Core Viewpoint - Wendel is launching the accelerated placement of approximately 23.3 million Bureau Veritas shares to prepare for the settlement of an exchangeable bond maturing in March 2026, aiming to enhance financial flexibility and reduce its Loan-To-Value ratio ahead of the bond's maturity [1][4]. Group 1: Transaction Details - The exchangeable bond (EB) was issued in March 2023, raising €750 million with an annual coupon of 2.625%, which is lower than a straight bond due to its optional component [2]. - The transaction involves monetizing the underlying shares of the EB and implementing a symmetrical hedging protection to neutralize the optional component, with BNP PARIBAS and Goldman Sachs acting as hedging counterparties [3]. - Approximately 2.3 million shares will be ordered by the hedging counterparties as part of the placement, which will be fully allocated by Wendel [3]. Group 2: Financial Implications - The proceeds from the placement will help reduce Wendel's Loan-To-Value ratio, allowing the company to pursue its strategic plan more effectively [4]. - Following the placement, Wendel's stake in Bureau Veritas will decrease from 26.5% of the share capital and 41% of voting rights to approximately 21.4% of the share capital and 35% of voting rights [5]. Group 3: Market and Regulatory Context - The placement is reserved for qualified investors and international institutional investors, and it is not a public offering in any country, including France [7][10]. - The final terms of the placement will be announced after the completion of the bookbuilding process, which is expected to settle on September 18, 2025 [6].

The market has been very enthusiastic this week ahead of Wednesday's Fed meeting with investors pricing in basically a 100% chance of a cut. What are the options markets seeing ahead of that meeting. Joining us now is Chris Murphy, co-head of derivative strategy at Sescoana.Chris, great to have you with us. Thank you. Good to be here.So, how are investors positioning. I think everyone's long. I mean, we're going to be highlighting to our clients that we're seeing a lot of put spread buying.Uh kind of focuse ...

Moving on, Terry Duffy is one of uh the Hood Summit's featured speakers on active trading. CME Group chairman and CEO joins us now from Las Vegas. Terry, it is always a pleasure to speak with you.Thanks, Melissa. Pleasure to be with you. Um your the products that trade on the CME used to be the the bastion of of of institutional traders, but now have crossed into the retail trading, which is probably why you are at the Hood Summit.I'm wondering, Terry, in terms of the percentage um accounted for by retail i ...

Core Insights - The article focuses on analyzing Rithm Capital Corp.'s (RITM) recent performance compared to 17 mortgage real estate investment trust (mREIT) peers, highlighting key metrics such as investment composition, leverage, hedging coverage ratio, and economic returns [1][2][3]. Investment Composition and Performance - As of June 30, 2025, RITM's investment portfolio consisted of 20% fixed-rate agency MBS, 0% variable-rate agency MBS, 36% mortgage servicing rights (MSR), and 44% non-agency MBS and other mortgage-related investments [17][19]. - RITM's total MSR sub-portfolio had an unpaid principal balance (UPB) of $865 billion, reflecting a significant increase from $648 billion a year prior, largely due to acquisitions [37][38]. Leverage and Hedging - RITM's on-balance sheet leverage ratio was 2.5x, with an at-risk leverage ratio of 0.9x as of June 30, 2025, indicating a slight decrease in leverage compared to the previous quarter [19][20]. - The hedging coverage ratio for RITM was 44% as of June 30, 2025, which is geared towards lower mortgage interest rates, allowing the company to maintain stability in its book value (BV) during fluctuating interest rate environments [46][53]. Economic Returns - RITM achieved a trailing 24-month economic return of 20.97%, outperforming all covered mREIT peers, with the average returns for various classifications being significantly lower [51]. - The company's BV increased by 2.58% from Q1 to Q2 2025, driven by a minor increase in mortgage interest rates and a quarterly dividend of $0.25 per share, resulting in an economic return of 4.60% for Q2 2025 [20][21]. Valuation and Market Position - As of September 5, 2025, RITM's stock price was $12.62, trading at a 2.55% discount to the estimated current BV of $12.95, suggesting a slightly undervalued position compared to peers [48][49]. - RITM's diversified investment strategy, including MSR and other mortgage-related assets, positions it favorably to deliver attractive risk-adjusted returns across various interest rate scenarios [56].

The cost of hedging in the currency market is rising after the summer lull, with traders positioning for wider price swings around Friday’s key US jobs report https://t.co/4cDosi9VuZ ...

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Core Viewpoint - AGNC Investment Corp. and Starwood Property Trust, Inc. are two prominent players in the mortgage real estate investment trusts (mREITs) sector, both providing attractive long-term returns and substantial dividend yields. The analysis aims to compare their strengths, risks, and growth potential to determine which offers a better investment opportunity at present [2]. Group 1: AGNC Investment Corp. - AGNC employs an active portfolio-management strategy, regularly adjusting its holdings and implementing hedges to respond to market changes, positioning itself defensively against volatility [3]. - As of June 30, 2025, AGNC maintained a significant interest rate hedge covering 89% of its outstanding balance, which may enhance cash flow stability and support long-term growth [4]. - The company holds $73.3 billion in Agency mortgage-backed securities (MBS), benefiting from government guarantees, which are expected to yield attractive risk-adjusted returns despite market volatility [5]. - AGNC's liquidity, including unencumbered cash and Agency MBS, was reported at $6.4 billion as of June 30, 2025, with a modest increase in leverage to 7.6X [6]. - AGNC has a high dividend yield of 14.66%, exceeding the industry average of 12.12% [17]. - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 15.4% for AGNC in 2025 [20]. Group 2: Starwood Property Trust, Inc. - Starwood Property specializes in commercial mortgage-backed securities (CMBS) and manages a portfolio of nearly $27 billion as of June 30, 2025, allowing for stable income generation [7]. - The company has actively optimized its portfolio through strategic acquisitions and divestitures, including the sale of 16 retail properties for $387.1 million in February 2024 [8]. - Starwood's liquidity position is strong, with cash and cash equivalents of $475 million and no short-term debt as of June 30, 2025 [10]. - Starwood is trading at a 12-month forward price-to-tangible book (P/TB) of 1.06X, which is a discount compared to the industry average, making it a more attractive option for value investors [14]. - The Zacks Consensus Estimate for Starwood suggests a year-over-year earnings decline of 6.4% for 2025, but a rise of 7.7% for 2026 [23]. Group 3: Comparative Analysis - In the past six months, STWD shares increased by 4.8%, while AGNC shares rose by 1.7%, outperforming the industry growth of 0.8% [11]. - AGNC is trading at a premium, while STWD trades at a discount, indicating a stronger earnings outlook for STWD [9][14]. - STWD's dividend yield is 9.53%, supported by more sustainable fundamentals and a clearer path to earnings growth compared to AGNC [17][28]. - AGNC is characterized by a defensive income strategy through Agency MBS and hedging, while STWD demonstrates greater resilience and flexibility with disciplined portfolio management [27][28]. - Currently, AGNC holds a Zacks Rank of 4 (Sell), whereas Starwood Property has a Zacks Rank of 1 (Strong Buy), indicating a preference for STWD among investors [29].

Core Insights - Annaly Capital (NYSE:NLY) had a normal quarter with minor changes, experiencing a slight decrease in the value of its assets, which was anticipated, and the stock is currently considered overpriced [1][15] Financial Performance - NLY recorded a minor quarterly book value (BV) decrease that aligned with expectations, with a total net valuation gain of $147 million during Q2 2025, outperforming the projected gain of $110 million [2][10] - Core earnings/EAD for NLY matched expectations with a slight increase compared to Q1 2025, driven by a larger on-balance sheet portfolio size [4][10] - The hedging coverage ratio decreased from 102% to 95%, which was anticipated, indicating a slight reduction in risk management strategies [3][6] Valuation Metrics - The reported GAAP BV per share was $18.45, slightly above the projected $18.35, reflecting a 0.54% outperformance [10] - The stock price is currently at $21.14, leading to a dividend yield of 13.25% and a payout ratio of 96%, indicating a high dividend relative to earnings [12] Market Position - NLY's performance in terms of BV decrease and core earnings increase is expected to outperform most agency mREIT peers, suggesting a relatively strong position in the market [5][14] - The company remains in a good position to maintain its quarterly dividend of $0.70 per common share, despite core earnings only slightly covering this amount [14]

Gold ETF Market Trends - Gold ETFs are experiencing unprecedented interest, driven by risk and uncertainty in the market [2] - Gold ETFs can serve as a hedge against market downturns and unclear risks in portfolios [3] - While gold ETF flows are strong, their percentage of the S&P 500 market capitalization has decreased from 6% to 03% over the last decade, suggesting potentially less hedging in portfolios relative to the equity market [6] - The European ETF market accounts for approximately 35% of the global gold-backed ETF market [11] - Asia, particularly China, India, and Japan, has seen significant growth in gold ETF markets in the last two years [11] Factors Influencing Gold Prices - Central banks' increasing allocation to gold reserves is a significant driver of gold prices [15] - Central banks are diversifying away from the dollar and into gold [15] - Geopolitical risks, Fed decisions, fiscal spending, and inflation are key factors influencing gold prices [13] Tariffs and Market Impact - The market anticipates that gold in the investment and wholesale context will not be subject to tariffs [17] - President Trump's statement on social media has calmed the market regarding potential gold tariffs [18] Innovation in Gold Products - It is difficult to improve upon existing gold ETFs like GLD for tracking the spot price of gold [22][23] - The industry is exploring digitization to improve access to the gold market, potentially creating a "stable gold" alongside ETFs [25][26]

Hedging is a risk management strategy where investors take an offsetting position in another asset to limit exposure. It’s a core tactic for reducing potential losses. Learn more: https://t.co/bK2034WieF https://t.co/lzH8kfKaZT ...