NTU IIC Bulletin

Hello everyone! 👋🏻 Welcome to our weekly market review series! In this series, we review weekly market performance and the movement of stocks in that week.📈 This week we have introduced 2 events with global repercussions which are the collapse of Silicon Valley Bank and the banking crisis in the USA and the acquisition of Credit Suisse by its rival UBS. Additionally, we have focused on Sembcorp Industries and ST Engineering. 📊 In addition to this, we have two new investment jargons for you: Bank Run and Hyperinflation. 📝 Do share your thoughts in the comment section! We hope you all learned something new this week. Next week, we will be back with more interesting updates. 🎉 Disclaimer: All information provided is solely for educational purposes. This is not to be construed as financial advice and IIC is not responsible for losses from your investment decisions.

Hi everyone! 😃 IIC would like to conduct a broad survey and would appreciate your comments on how we can make our bulletin more relevant and exciting for everyone! 🙏 Please do not hesitate to provide your honest feedback on the quality, relevance and frequency of our Weekly Market Review posts as well as other marketing materials we disseminate on this channel. Thank you! 👉🏻 CLICK HERE FOR SURVEY! 👈🏻

Hello everyone! 👋🏻 Welcome to our weekly market review series after a week's break! In this series, we review weekly market performance and the movement of stocks in that week.📈 This week we have focused on Genting Singapore, UOB and Raffles Medical Group . 📊 In addition to this, we have two new investment jargons for you: R-Squared Measure and Net Asset Value per share (NAV). 📝 Do share your thoughts in the comment section! We hope you all learned something new this week. Next week, we will be back with more interesting updates. 🎉 Disclaimer: All information provided is solely for educational purposes. This is not to be construed as financial advice and IIC is not responsible for losses from your investment decisions.

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Next up, we would like to take this opportunity to put a spotlight on another one of our main sponsors, Nikko Asset Management. Here are a few words from them! With USD$186.2 billion under management (As of 30 September 2022), Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of equity, fixed income, multi-asset and alternative strategies. In addition, its complementary range of passive strategies covers more than 20 indices and includes some of Asia’s leading exchange-traded funds (ETFs). To find out more about Nikko Asset Management’s ETFs, visit Nikkoam.com.sg/etf and nikkoam.com.sg/rsp

As the Singapore Financial Conference 2023 draws to a close, we would like to take this opportunity to put a spotlight on one of our main sponsors, @phillipcapital PhillipCapital Group aims to make the online investing journey as seamless as possible for our customers, by educating new and existing investors on the rapidly changing financial market and empowering them with informed decision-making, through the additional support and guidance of trained financial and trading advisor representatives who undergo continuous training to keep them close to the pulse of the market, and sharpen their advisory acumen for better client advice. Still don’t have the POEMS Mobile 3 App downloaded? Download it now at https://app.poems.com.sg/kSPr/10tibhab and enjoy your free Mr. Coconut shake!

On 4 March, Saturday, we saw various participants from the public and students from different faculties within NTU, from other external universities and tertiary institutions physically at the Singapore Financial Conference 2023! We would like to thank all participants for attending the conference and building connections with our speakers and event sponsors present at the event. We would also like to thank our speakers, Mr Paul Chew – PhillipCapital, Ms Rena Kwok – Bloomberg, Mr U-Jin Lim – Nikko Asset Management, Mr Yuhan Tan, CFA – Endowus, Dr Xin Wang – Moderator and Dr Sarjit Singh – Guest of Honour, for gracing the event and providing deep insights for our participants into the financial markets amidst a potential recessionary climate. Lastly, we would also like to thank PhillipCapital and Nikko Asset Management for their kind sponsorship for the event! On behalf of the NTU Investment Interactive Club, we would like to thank you all and we hope to see you again next year!

Dear NBS Undergraduates, BDO and ISCA will be having a sharing session today (20 March 2023) from 7pm - 8pm. If you are interested in audit or accounting field, or having any questions regarding these, do drop by this sharing sessions! As we are having BDO’s Audit Partners Mr Stephen Leong, Mr Siok Yong and Mr Hongzhou sharing to you about their personal experience and their career journey as an auditor, this session will be especially useful for those plan to become auditors or just interested in this career! The session will be conducted over zoom, from 7pm to 8pm. Do join us at: Zoom Meeting ID: 889 5893 9308 Passcode: NAAT2023 Zoom link: https://ntu-sg.zoom.us/j/88958939308 HOPE TO SEE YOU TONIGHT!

Warren Buffett is one of the most revered investors in the world. He embodies key values and philosophies that each investor should follow in their investing journey and decisions. 📈📈 Here are the top 10 tips on investing provided by Warren Buffett. Let us know what you think in the comments.

Hello everyone! 👋🏻 Welcome to our weekly market review series! In this series, we review weekly market performance and the movement of stocks in that week.📈 This week we have focused on CapitaLand Investment, City Developments Limited and Sembcorp Marine . 📊 In addition to this, we have two new investment jargons for you: Diversification and Retained Earnings. 📝 Do share your thoughts in the comment section! We hope you all learned something new this week. Next week, we will be back with more interesting updates. 🎉 Disclaimer: All information provided is solely for educational purposes. This is not to be construed as financial advice and IIC is not responsible for losses from your investment decisions.

We keep hearing about venture capital and its links to the startup space. But what exactly is venture capital? Who is involved? How is funding secured? 💵💵 Read the post above to found out more!

Thank you for joining National Cashflow Competition 2023! The energy in the room was truly inspiring. After being online for 3 years, we're finally back physically with 592 participants! We want to take a moment to express our sincere gratitude to everyone who made our event such a great success. The organizing committee, sponsors, and partners for their hard work and dedication to making this event happen. We would like to extend pur gratitude towards Sarjit Singh, Alan L., U-jin Lim, and Ferris Wee, your support and contributions were invaluable and greatly appreciated. Finally, we want to thank everyone who attended the event. Your enthusiasm and engagement made it an unforgettable experience for all of us. We hope that you have gained more insights about financial literacy, and that you found the event informative, inspiring, and enjoyable. We are already looking forward to our next event and hope to see you all there!

SVB's failure doesn't invoke systemic risk and therefore allows the Fed to focus upon CPI in the week ahead in order to decide next steps following a mixed jobs report. But it does expose the need for further bank consolidation. Populist banking policies in decades past are still exacting a toll. America has over 4,100 commercial banks of which about 80% have less than $1 billion in assets. All but a handful of world class banks are under SVB's modest size. They generally lack diversification, sophisticated Treasury and risk management functions, and have high failure rates. QT exposes the vulnerabilities of these banks. Instead of backing off, the Fed should press on with QT alongside encouraging consolidation. Politics may interfere, but customers, depositors, shareholders and employees are not well served when such banks fail as the QE security blanket gets pulled back to help combat the broader costs of inflation.

Now for the ‘interesting’ stuff behind this SVB issue: • Just days before the collapse, executives sold millions of dollars of stock: Gregory Becker, CEO sold 11%, Michael Zucker, General Counsel - 19%, Daniel Beck, CFO - 32%, Michelle Draper, CMO - 25% • Unbelievably, SVB’s Chief Administrative Officer was also the CFO of Lehman Brothers' when it collapsed. They also went months without a Chief Risk Officer. Yes, really. • Silicon Valley Bank was hailed as one of ‘America’s Best Banks’ by Forbes magazine just about a month ago. They ranked 20th out of 100. • It’s now quite likely that a big bank buys them up next week. Elon Musk even said he’s open to the idea of buying them. • SVB’s CEO was on the San Francisco Federal Reserve’s Board, he’s not anymore for pretty obvious reasons. The massive debate now is around whether the should get bailed out by the Fed or not. This has massive implications for the depositors which are companies and major VC’s in Silicon Valley. Monday will be massive.

Wall Street Frets Over Next Shoe to Drop After SVB A Fed rate cut by year-end is back in favor amid bank jitters Two-year Treasury yields extend retreat from over 5% (Bloomberg) --A renewed bout of volatility rattled markets around the world as SVB Financial Group’s turmoil spurred concern about further distress in the banking industry at a time when the Federal Reserve is deploying its most-aggressive tightening campaign in a generation. Not even remarks from prominent voices that a systemic financial crisis is unlikely was able to appease investors. Equities sold off, with the S&P 500 coming close to wiping out its 2023 gains. Traders rushed in droves to the safety of bonds, which also soared after jobs figures offered a glimmer of hope that the Fed may refrain from accelerating its pace of rate hikes. As risk assets got pummeled, the US stock benchmark suffered its worst week since September. Wall Street’s so-called “fear gauge” spiked, with the Cboe Volatility Index hitting the highest this year. Treasury two-year yields plummeted 28 basis points to 4.59%. The trigger for further de-risking was the official news that Silicon Valley Bank became the biggest US financial failure in more than a decade, after its long-established customer base of tech startups grew worried and yanked deposits. It’s the second regional lender to fold this week after Silvergate Capital Corp. announced it was voluntarily liquidating its bank. Anxiety is also running high ahead of next week’s consumer price index report, especially after Fed Chair Jerome Powell recently emphasized that a move to a faster pace of tightening would be based on the “totality of the data.” “We are just beginning to feel the effects of quantitative tightening on markets and the economy,” said Peter van Dooijeweert at Man Solutions. “As such, the market seems to be reverting to a 25 basis-point hike next meeting after almost being certain of 50 basis points only a few days ago. The worst-case scenario ahead would be a high CPI next week forcing the Fed’s hand despite hints of financial stability issues.” Swap traders now see a 25-basis point hike at the March policy meeting as more likely than half-point move. They also lowered expectations for how high the Fed will push the borrowing costs — once again fully pricing in a rate cut from the peak level by year-end. The rate hikes of the past year were not a prelude to a steady Goldilocks economy that’s running neither too hot nor too cold, but instead to a “hard landing and credit events,” strategists led by Michael Hartnett wrote in a note on fund flows pointing to another risk-off week in markets. Investors pulled $500 million from equity funds and piled $18.1 billion into cash and $8.2 billion into bonds, according to BofA citing EPFR Global data for the period through March 8. Treasury Secretary Janet Yellen said the US banking system “remains resilient” and regulators “have effective tools” to address developments around Silicon Valley Bank. Former Treasury Secretary Lawrence Summers said the meltdown of SVB shouldn’t pose a threat to the financial system as long as depositors are made whole. “Contagion risk and the systemic threat can be easily contained by careful balance sheet management and avoiding more policy mistakes,” Mohamed El-Erian, the chairman of Gramercy Funds and a Bloomberg Opinion columnist, said in a tweet on Friday.

Unrealized Losses In all, US banks’ had booked $620 billion in unrealized losses on their available-for-sale and held-to-maturity portfolios at the end of last year, according to filings with the Federal Deposit Insurance Corp. The agency noted this month that those paper losses “meaningfully reduced the reported equity capital of the banking industry.” Banks have been so profitable that for most of them, the paper losses have limited their potential stock buybacks but not otherwise been a major issue. “All people who’ve been around banking would say higher rates in sort of a stable environment is good for banks in the long run, it can be painful getting there,” KeyCorp Chief Strategy Officer Clark Khayat told investors this week after previously warning the country’s 20th largest bank would consider a sale of the available-for-sale securities if the deal was “economically positive.” Those unrealized losses don’t appear on the firms’ income statement, but some do affect lenders’ so-called accumulated other comprehensive income, or AOCI. Because swings in AOCI impact shareholder equity, the drop in AOCI has weighed on key capital ratios, forcing some to curtail share repurchases.

(Bloomberg) -- Bank investors are grappling with the question of whether SVB Financial Group’s troubles are an isolated case or a harbinger of industry-wide shock. The answer, for now, is that it is facing an extreme version of an issue hitting all banks — plus some problems that are unique. All US lenders parked a chunk of their money in Treasuries and other bonds that dropped in value last year amid the Federal Reserve’s rapid rate hikes to contain inflation. But SVB took it to a different level: its investment portfolio swelled to 57% of its total assets. No other competitor among 74 major US banks had more than 42%. And while higher rates have made all banks fret about depositors going elsewhere, most lenders have very broad customer bases spread among individuals and companies. SVB grew rapidly thanks to its focus on tech startups as its primary clients. “Once the initial shock has had some time to fade, people will realize that this bank is very different in nature compared to more traditional banks,” said Mark Naur, a strategist at Danske Bank AS. “While rising rates is overall very good for banks, some will have asset-liability mismatches that can get them in trouble.” The bank said this week it offloaded a big chunk of its bond investments at a loss to increase its liquidity. Fears of an exodus of client deposits prompted shares to drop 60% on Thursday with another steep fall in early trading Friday. Special case or not, bank investors aren’t waiting around to see how unique the problems are. In the US, the KBW Bank Index had its worst day since June 2020, as its members shed more than $90 billion of value. In Europe, the biggest banks lost more than $40 billion off their market caps on Friday. While SVB was the worst performer of any company in the S&P 500 Index on Thursday, the index’s second worst performer was First Republic Bank, another California lender that banks startups and technology companies. PacWest Bancorp, which counts on venture capitalists for a third of its deposits, also slumped 25%.