TechCrunch’s Marina Temkin, who moderated the panel, shared a jarring example from a recent conversation with a general partner at a venture firm: A portfolio company last valued at 20 times revenue was recently offered just 2 times revenue in the secondary market — a 90% discount.The panel didn’t sugarcoat one of the harsh truths about venture valuations, which is that there’s often a huge gap between what VCs think their portfolios are worth and what buyers will actually pay.The alternative is active port ...

ETF Liquidity Is determined by primary market creations and redemptions, as well as secondary market volume and bid-ask spreads on exchanges. https://t.co/cLFPWfrK5Y ...

Financial Data and Key Metrics Changes - Total revenues for the third quarter were $454 million, down both sequentially and year over year due to lower external deliveries in the Rail Products Group [13] - Earnings per share (EPS) for the quarter were $0.38, up sequentially due to favorable margin performance [13] - Full year EPS guidance has been raised to a range of $1.55 to $1.70, reflecting confidence in the business model and execution capabilities [5][18] Business Line Data and Key Metrics Changes - The railcar leasing and services segment saw revenue growth year over year, driven by higher fleet pricing and strong utilization of 96.8% [7] - Renewal rates were 25.1% above expiring rates with an 82% renewal success rate [7][30] - The Rail Products Group achieved a solid operating profit margin of 7.1% despite lower deliveries of 1,680 railcars [9][10] Market Data and Key Metrics Changes - The North American railcar fleet is contracting as scrapping is outpacing new railcar deliveries, with an expected 40,000 railcars to be scrapped this year [16] - Industry railcar orders were 3,071 in the quarter, well below expectations, indicating a challenging market environment [10] - The backlog stands at $1.8 billion, with approximately 21% expected to deliver by year-end [11] Company Strategy and Development Direction - The company is focused on leveraging its integrated platform of railcar leasing, manufacturing, and services to deliver value to shareholders and customers [11] - There is an emphasis on maintaining a well-utilized fleet and capitalizing on secondary market opportunities [8][12] - The company plans to continue prioritizing investment in its fleet for sustainable long-term returns [17] Management's Comments on Operating Environment and Future Outlook - Management noted that persistent market uncertainty has delayed customer decisions to invest in new railcars, but strong inquiries and discussions indicate potential for future growth [22] - The company expects industry deliveries in 2026 to be similar to 2025, reflecting ongoing market challenges [26] - Management remains confident in the ability to generate significant and consistent cash flows from the fleet [12] Other Important Information - Year-to-date cash flow from continuing operations was $187 million, with a net fleet investment of $387 million, exceeding full year guidance [14] - The company has returned $134 million of capital to shareholders through dividends and share buybacks [14] Q&A Session Summary Question: Current railcar delivery and order environment - Management indicated that the current backlog includes a multi-year order with 50% of the industry backlog, and industry deliveries are projected to be below replacement level demand [22] Question: Delivery gap versus replacement level demand - Management noted that the gap is primarily driven by delays in placing orders rather than a lack of need, with expectations for a pickup once market certainty improves [25] Question: Impact of Class 1 rail consolidation on asset utilization - Management discussed the potential for increased fluidity and speed in rail networks, which could lead to industry growth and fleet growth [28] Question: FLRD drop and expectations - Management explained that the drop in FLRD was due to higher expiring rates and some moderation in market rates for certain railcar types, but remains optimistic about leasing revenue growth [30] Question: Repricing of the fleet - Approximately 65% of the fleet has been repriced, with expectations for continued growth in lease revenue [33] Question: Secondary market performance - Management expressed confidence in the strong secondary market, which has become a primary avenue for growth due to softness in the new car market [51] Question: ABS deal and credit investor appetite - Management reported strong demand for their ABS issuance, highlighting flexibility and positive reception from investors [56]

Core Insights - The article emphasizes the distinction between primary and secondary liquidity in ETFs, highlighting that liquidity assessments for ETFs require a deeper understanding than for individual stocks [2][4][6] Group 1: Liquidity in ETFs - Liquidity for individual stocks is primarily about trading volume and regularity, whereas for ETFs, both primary and secondary liquidity must be considered [1][2] - Secondary market liquidity is determined by the trading volume of existing ETF shares, while primary market liquidity relates to the efficiency of creating or redeeming shares [3][4][6] - The supply of ETF shares is flexible, allowing for the creation or redemption of shares to meet demand changes, which is a unique feature of ETPs [4][5] Group 2: Market Participants - In the secondary market, investors trade existing ETF shares, while in the primary market, authorized participants (APs) manage the supply of shares [5] - The liquidity determinants differ between the two markets; secondary market liquidity is influenced by the value of ETF shares traded, while primary market liquidity is tied to the underlying assets [6][7] Group 3: Trading Strategies - Large trades can bypass illiquid secondary markets by utilizing APs to create new ETF shares, which is beneficial for institutional investors [7] - For most investors, trading occurs in the secondary market, where assessing liquidity involves analyzing average spreads, trading volume, and the relationship between ETF prices and net asset value [8]

Secondary Market Dynamics - Secondary market concentrates on top companies due to information scarcity [2] - Over 90% of trading volume on HIVE is in the top 20 companies [3] - $61 billion in secondary market volume represents about 2% of primary unicorn valuations and a third of primary VC asset value [4] - Secondary market serves as a vital liquidity valve with potential for growth [4] IPO and Secondary Market Correlation - Strong correlation exists between primary exit activity (IPOs) and the secondary market [6] - IPO window opening likely leads to increased secondary market activity [8] - Pricing transparency fosters a symbiotic relationship between primary and secondary markets [6] Secondary Market Investors - Secondary investors have shorter timelines compared to primary venture investors [7] - Secondary market attracts family offices, pensions, and non-traditional investors [9] - A wide range of investors participate in the secondary market, including venture firms with dedicated secondary funds [9][10] Sector Focus and IPO Trends - Companies aligned with key policy priorities (crypto, fintech, defense, security) attract interest in the secondary market [11] - IPO success depends on alignment with key sectors or strong fundamentals and profitability [12][13]

NFT Market - ASX's yield-bearing NFTs are now available on BlockzGG, Coredao_Org's premier NFT marketplace [1] - ASX Capital has experienced significant demand for its NFTs over the past two months [1]

NFT Market - ASX's yield-bearing NFTs are now available on BlockzGG, Coredao_Org's premier NFT marketplace [1] - ASX Capital has experienced significant demand for its NFTs over the past two months [1]

Consumer Behavior & Market Trends - Resale stigma has diminished, now a badge of honor, driven by millennials and Gen Z [1] - Consumers, especially Gen Z, are increasingly likely to buy secondhand first [1] - Consumers are now checking secondary market prices before purchasing in the primary market [3][4] - Consumers are using resale platforms to assess the resale value of items before initial purchase, similar to using Kelly Blue Book for pricing [4] Business Strategy & Opportunities - Educating consumers about resale value is crucial for disrupting the space [1][2] - Stores provide a branding opportunity to showcase secondhand options [1][2] - Consignment creates a positive feedback loop, encouraging repeat business and changing shopping behavior [3] Product & Brand Performance - Certain items, like shoes, may not hold resale value, while brands like Birken and jewelry do [2]

Private Equity - New Mountain Capital is considering using the secondary market for its Azuria Water investment [1] - This move reflects a trend of private equity firms seeking to extend their hold in a challenging dealmaking environment [1]

Bruce Flatt predicted the secondary market for private equity, real estate and infrastructure will take off. Five years later, the boom has come and his Brookfield has largely missed out. https://t.co/dmfKa0uX8M ...