Jefferies Insights - July 2019

As part of the firm’s daily communication with clients, Jefferies regularly publishes perspectives, ideas and insights on the markets and our areas of focus through research reports, trend analysis, white papers and industry commentary, as well as strategy and economic thought pieces.

Economics and Strategy

• Fed Policy vs Trade Policy: It’s Not Even a Contest
• Risk Aversion Overwhelms Fundamentals
• U.S. Outlook – U.S. Inflation in a Globalized World
• European Outlook – Can the ECB and the BoE Wrestle Back Control of Monetary Policy?

Actionable Ideas for Companies and Sponsors

• Activist Activity Should Increase Due to Continued Uncertainty Around Brexit
• SPACs Continue to be a More Pervasive Buyer of U.S. Businesses
• Private Equity Becoming An Important Buyer of Venture-Backed Businesses
• “Loan-to-Value” Debt Financing is Available for High Growth Private Companies
• HoldCo PIK Toggle Notes to Finance Dividend Recaps
• Incremental First Lien Term Loans to Refinance Second Lien Term Loans
• Convertible Bonds for Smaller Companies
• Concurrent Offerings Gaining Momentum
• European Mid-Caps Increasingly Turning to The Equity Markets For M&A and Growth Financing
• Buyers are Increasingly Pursuing Section 363 Asset Purchases
• Higher Education and Healthcare Issuers Should Consider Issuing Century Bonds

Best Research Ideas

• U.S. Insights – Gathering What Another Man Spills: Favored by Jefferies, Not by the Street
• Telecom & Networking Equipment – 5G: Why We Don’t Believe in the 5G “Cycle”
• Amazon (AMZN) – Deep Dive: Still Room to Run
• Telefonica: Looking More GARP as Spain Advances
• The Mortality Mystery
• Hong Kong | Consumer Gaming – Buying In: Initiate on the Macau Gaming Sector. Top Buy - Sands China
• India Retailers – Online Retail: Love It or Hate It but Don't Ignore It
• Japanese Steel Producers – Creation of Value Destruction: Structural Short Thesis on Japanese Steelmakers