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Can You Identify A Conflicted MOC Trade?

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posted by CAPIS on 09/22/2020 at 1:12 pm
by CAPIS on 09/22/2020

This is the first part in a three part series on Transition Management   Frankly, most people would have to say, “No.” Identifying a conflicted Market-on-Close (MOC) trade can be difficult, but we can show you how. It simply requires a fill-level execution file from your transition manager and some advanced intraday charting capabilities. Tell-tale signs of a conflicted principal trade: Single stock identifiers: Fill-level prints that are larger than the market’s closing print For example, if your fund sold 120,000 shares of XYZ at the close, but the closing print in the market was only 80,000 shares, your trade was executed by a principal desk. Look for unusual price action prior to the close. Portfolio level indicators: Dramatic price disparity in the final hour of trading After charting the portfolio disparity between the target and legacy, look for an inflection point in the final hour. In the example below, the black line represents the implicit cost as measured by the difference between buys and sells. Note the inflection point at 15:40, 20 minutes before the close. This portfolio lost over 100 bps in the final 30 minutes. The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider…

This is the first part in a three part series on Transition Management   Frankly, most people would have to say, “No.” Identifying a conflicted Market-on-Close (MOC) trade can be difficult, but we can show you how. It simply requires a fill-level execution file from your transition manager and some advanced intraday charting capabilities. Tell-tale signs of a conflicted principal trade: Single stock identifiers: Fill-level prints that are larger than the market’s closing print For example, if your fund sold 120,000 shares of XYZ at the close, but the closing print in the market was only 80,000 shares, your trade was executed by a principal desk. Look for unusual price action prior to the close. Portfolio level indicators: Dramatic price disparity in the final hour of trading After charting the portfolio disparity between the target and legacy, look for an inflection point in the final hour. In the example below, the black line represents the implicit cost as measured by the difference between buys and sells. Note the inflection point at 15:40, 20 minutes before the close. This portfolio lost over 100 bps in the final 30 minutes. The CAPIS Difference: Since 1998, CAPIS has been a trusted independent provider…

Why CAPIS?  Why Now?

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posted by CAPIS on 09/09/2020 at 10:01 am
by CAPIS on 09/09/2020

Penned by Ann Sebert, CEO and President   When I’m asked, “What is the biggest challenge for CAPIS?” My response has always been, “Recognition.” Throughout my career at CAPIS, I spent time on the financial side of the business, and while I knew the firm’s sizable footprint in the industry, I was not in a position to lead the effort promoting CAPIS. That all changed in January 2020, when I assumed the position of CEO. Since taking on this new role, my management team and I have made telling CAPIS’ story a priority as we enter the next chapter of our history as a leading broker for institutional asset managers. CAPIS has always been a trusted, compliance-driven partner to our clients, but for 40-plus years, our marketing efforts were solely word of mouth. Our client base is now over 1,000 strong, with many of those client relationships dating back to CAPIS’ founding in 1977, but still we’re asked, “What is CAPIS?” It’s time to tell our story and spread the word about CAPIS. As such, we have formalized our mission statement: CAPIS is a compliance-driven brokerage firm, transacting financial assets for institutional investors. Our mission is to be the standard for…

Penned by Ann Sebert, CEO and President   When I’m asked, “What is the biggest challenge for CAPIS?” My response has always been, “Recognition.” Throughout my career at CAPIS, I spent time on the financial side of the business, and while I knew the firm’s sizable footprint in the industry, I was not in a position to lead the effort promoting CAPIS. That all changed in January 2020, when I assumed the position of CEO. Since taking on this new role, my management team and I have made telling CAPIS’ story a priority as we enter the next chapter of our history as a leading broker for institutional asset managers. CAPIS has always been a trusted, compliance-driven partner to our clients, but for 40-plus years, our marketing efforts were solely word of mouth. Our client base is now over 1,000 strong, with many of those client relationships dating back to CAPIS’ founding in 1977, but still we’re asked, “What is CAPIS?” It’s time to tell our story and spread the word about CAPIS. As such, we have formalized our mission statement: CAPIS is a compliance-driven brokerage firm, transacting financial assets for institutional investors. Our mission is to be the standard for…

Is CAPIS the Oldest Outsourced Trading Firm?

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posted by CAPIS on 09/08/2020 at 9:55 am
by CAPIS on 09/08/2020

Penned by Chris Hurley, Director, Institutional Sales   Although Outsourced Trading is a relatively new term for the industry, CAPIS has been providing this service for over 30 years. Let that sink in – 30 years. For decades smaller managers have foregone the expense of building a trading desk and instead have relied on CAPIS to represent them in the market.  Once the old exchange model morphed into the plethora of execution venues we have today, having a broker that is not conflicted with proprietary trading became a top criterion. CAPIS has never had to “brand” itself as an Outsourced Trading desk.  Acting solely in the client’s best interest is something CAPIS has done since the beginning.  CAPIS has no internal risk book or market making business, nor are we beholden to any affiliated trading venues.  While others must segregate their Outsourced desk to minimize internal conflicts, CAPIS has not changed a thing; we have been trading our client’s assets as if they were our own since our inception in 1977. Our clients who traffic in small and mid-cap names greatly appreciate that they can show CAPIS their entire order.  They know that we have their best interest at heart,…

Penned by Chris Hurley, Director, Institutional Sales   Although Outsourced Trading is a relatively new term for the industry, CAPIS has been providing this service for over 30 years. Let that sink in – 30 years. For decades smaller managers have foregone the expense of building a trading desk and instead have relied on CAPIS to represent them in the market.  Once the old exchange model morphed into the plethora of execution venues we have today, having a broker that is not conflicted with proprietary trading became a top criterion. CAPIS has never had to “brand” itself as an Outsourced Trading desk.  Acting solely in the client’s best interest is something CAPIS has done since the beginning.  CAPIS has no internal risk book or market making business, nor are we beholden to any affiliated trading venues.  While others must segregate their Outsourced desk to minimize internal conflicts, CAPIS has not changed a thing; we have been trading our client’s assets as if they were our own since our inception in 1977. Our clients who traffic in small and mid-cap names greatly appreciate that they can show CAPIS their entire order.  They know that we have their best interest at heart,…

Employee Spotlight: Kelly Eskildsen

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posted by CAPIS on 09/03/2020 at 11:25 am
by CAPIS on 09/03/2020

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. To that end, we sat down with one of our senior equity traders, Kelly Eskildsen , to discuss how she got started in the trading industry, some of the best moments during her 17 years at CAPIS, and her hobbies and interests outside of work. What piqued your interest in the financial services industry? I first became interested in this industry because a really good family friend was working as a market maker at Southwest Securities, which is where I eventually had my first job. She would tell me stories about trading while I was in college at Iowa State. Until that time, I thought I’d always be working on my family’s farm in Iowa. The conversations that I had with her are what first piqued my interest. What was your first role at CAPIS? I was working at the agency-only call desk at Southwest Securities and, from watching market makers, I became interested in the trading side. When I found out there was an opening…

At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. To that end, we sat down with one of our senior equity traders, Kelly Eskildsen , to discuss how she got started in the trading industry, some of the best moments during her 17 years at CAPIS, and her hobbies and interests outside of work. What piqued your interest in the financial services industry? I first became interested in this industry because a really good family friend was working as a market maker at Southwest Securities, which is where I eventually had my first job. She would tell me stories about trading while I was in college at Iowa State. Until that time, I thought I’d always be working on my family’s farm in Iowa. The conversations that I had with her are what first piqued my interest. What was your first role at CAPIS? I was working at the agency-only call desk at Southwest Securities and, from watching market makers, I became interested in the trading side. When I found out there was an opening…

TRADING UPDATE: Bond Trading “Concierge Style”

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posted by CAPIS on 08/26/2020 at 1:44 pm
by CAPIS on 08/26/2020

Penned by David Lee, Director, Fixed Income Trading Have you ever executed a bond trade and wondered if you got the best price? How could you know? The solution is simple: Use your own personal shopper. At CAPIS, we will search a network of more than 70 broker dealers, including all primaries to find you the best price. Think of us as your own personal shopper. Need to liquidate a portfolio or find matching corporates? CAPIS can help. Looking for a specific bond(s) to build or adjust a portfolio or fill out a maturity ladder? CAPIS can help. The CAPIS Difference? • Trade execution where the only bias is on execution performance without the conflict a risk position brings • Access to broker-dealer networks, electronic platforms (broker-to-broker and all-to-all), and international counterparties • Single contact point that will complement and expand existing coverage • Client anonymity • Woman owned – Women’s Business Enterprise National Council certified At CAPIS, we provide unparalleled concierge service among fixed income trading desks. Every time. That’s the CAPIS Difference. Let us be your personal bond shopper. To take advantage of our services, call David Lee, Ray Prisco, or Aaron Bernstein at (800) 247-8888 or reach…

Penned by David Lee, Director, Fixed Income Trading Have you ever executed a bond trade and wondered if you got the best price? How could you know? The solution is simple: Use your own personal shopper. At CAPIS, we will search a network of more than 70 broker dealers, including all primaries to find you the best price. Think of us as your own personal shopper. Need to liquidate a portfolio or find matching corporates? CAPIS can help. Looking for a specific bond(s) to build or adjust a portfolio or fill out a maturity ladder? CAPIS can help. The CAPIS Difference? • Trade execution where the only bias is on execution performance without the conflict a risk position brings • Access to broker-dealer networks, electronic platforms (broker-to-broker and all-to-all), and international counterparties • Single contact point that will complement and expand existing coverage • Client anonymity • Woman owned – Women’s Business Enterprise National Council certified At CAPIS, we provide unparalleled concierge service among fixed income trading desks. Every time. That’s the CAPIS Difference. Let us be your personal bond shopper. To take advantage of our services, call David Lee, Ray Prisco, or Aaron Bernstein at (800) 247-8888 or reach…

The Bright Side

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posted by CAPIS on 08/21/2020 at 9:18 am
by CAPIS on 08/21/2020

The following was penned by Chris Halverson, STA Chairman and Senior Vice President, Institutional Sales at CAPIS I think we can all agree that 2020 hasn’t played out how we thought. It’s mid-August — ‘Back to School’ season for those of us with younger children — but instead of shopping for new clothes, backpacks and other supplies, we’re making sure that we have enough bandwidth to accommodate our kids’ virtual learning platforms. In many ways, this year has been a complete blindside as we continue to deal with COVID-19. Regardless of who you are, what you do or where you live, you’ve felt the impact. Chances are, it hasn’t been good. There is a bright side, however, that is starting to appear. Businesses and society have adapted, albeit at a pace that many would consider breakneck speed. We are all doing things and behaving differently than we were just a few short months ago, and hopefully, we are noticing some positive results. Some are small, like the simple pleasure of playing Monopoly with my girls during lunch break. Even though I lost, it was a wonderful moment. Some are more meaningful, like discovering the need for a better work/life balance and reinvesting in relationships.…

The following was penned by Chris Halverson, STA Chairman and Senior Vice President, Institutional Sales at CAPIS I think we can all agree that 2020 hasn’t played out how we thought. It’s mid-August — ‘Back to School’ season for those of us with younger children — but instead of shopping for new clothes, backpacks and other supplies, we’re making sure that we have enough bandwidth to accommodate our kids’ virtual learning platforms. In many ways, this year has been a complete blindside as we continue to deal with COVID-19. Regardless of who you are, what you do or where you live, you’ve felt the impact. Chances are, it hasn’t been good. There is a bright side, however, that is starting to appear. Businesses and society have adapted, albeit at a pace that many would consider breakneck speed. We are all doing things and behaving differently than we were just a few short months ago, and hopefully, we are noticing some positive results. Some are small, like the simple pleasure of playing Monopoly with my girls during lunch break. Even though I lost, it was a wonderful moment. Some are more meaningful, like discovering the need for a better work/life balance and reinvesting in relationships.…

Trading Update: One-Touch = No Delay

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posted by CAPIS on 08/13/2020 at 11:42 am
by CAPIS on 08/13/2020

Penned by Jason Gatewood, Executive Director, Global Trading  As sell-side desks have been forced to work remotely, you may have noticed communication and routing delays associated with the built-in layers of sales traders, execution desks, and position traders. At CAPIS, your trading contact directly accesses the market and controls all order-routing decisions without delay: our “one-touch” approach. When an order comes into our desk, it is handled directly by our trader – either manually or algorithmically. The order is not sent to other traders or another desk.  Throughout the pandemic, CAPIS has been able to maintain a safe office presence for equity trading. This footprint allows us to maintain the speed and efficiency that clients have come to expect from CAPIS’ “one-touch” approach. Today, each equity trading team has at least one trader in the office and every trader working remotely has home-based systems that mirror those in the office. All execution venues and client connectivity features, including direct ring-downs, have been replicated. In addition, our remote trading systems are all running on universal power supplies. At CAPIS, we work every order as if it were our very own. That is service you can trust. Every time. For trading inquiries…

Penned by Jason Gatewood, Executive Director, Global Trading  As sell-side desks have been forced to work remotely, you may have noticed communication and routing delays associated with the built-in layers of sales traders, execution desks, and position traders. At CAPIS, your trading contact directly accesses the market and controls all order-routing decisions without delay: our “one-touch” approach. When an order comes into our desk, it is handled directly by our trader – either manually or algorithmically. The order is not sent to other traders or another desk.  Throughout the pandemic, CAPIS has been able to maintain a safe office presence for equity trading. This footprint allows us to maintain the speed and efficiency that clients have come to expect from CAPIS’ “one-touch” approach. Today, each equity trading team has at least one trader in the office and every trader working remotely has home-based systems that mirror those in the office. All execution venues and client connectivity features, including direct ring-downs, have been replicated. In addition, our remote trading systems are all running on universal power supplies. At CAPIS, we work every order as if it were our very own. That is service you can trust. Every time. For trading inquiries…

Why 28(e) Works

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posted by CAPIS on 08/04/2020 at 10:40 am
by CAPIS on 08/04/2020

Once again, MiFID II is at the regulatory forefront.  Late last month, the European Commission proposed changes to help their capital markets weather COVID-19 and curb the regulations’ unintended consequences. Designed to address various conflicts of interest and improve transparency in European markets, MiFID II was implemented in 2018. One of the key provisions was the unbundling of payment for investment research from execution costs.  While these changes directly impacted EU nations, the SEC opted not to alter U.S. regulations in response to MiFID II. The “safe harbor” provisions of Section 28(e), implemented in 1975, remain the law of the land. With that said, MiFID II has had an impact on U.S. markets. It has shined a light on how much buy-side firms pay for research, and more importantly, the impact of research on returns. Over the past two years, it is clear that investment managers subject to MiFID II have trimmed their research budgets dramatically. In 2019, the FCA reported that research budgets had fallen, on average, 20-30%.  As a result, the sell-side has adjusted, trimming staff and reducing the amount of research that is available, a trend compounded by related pressure on independent research providers. While CAPIS applauds…

Once again, MiFID II is at the regulatory forefront.  Late last month, the European Commission proposed changes to help their capital markets weather COVID-19 and curb the regulations’ unintended consequences. Designed to address various conflicts of interest and improve transparency in European markets, MiFID II was implemented in 2018. One of the key provisions was the unbundling of payment for investment research from execution costs.  While these changes directly impacted EU nations, the SEC opted not to alter U.S. regulations in response to MiFID II. The “safe harbor” provisions of Section 28(e), implemented in 1975, remain the law of the land. With that said, MiFID II has had an impact on U.S. markets. It has shined a light on how much buy-side firms pay for research, and more importantly, the impact of research on returns. Over the past two years, it is clear that investment managers subject to MiFID II have trimmed their research budgets dramatically. In 2019, the FCA reported that research budgets had fallen, on average, 20-30%.  As a result, the sell-side has adjusted, trimming staff and reducing the amount of research that is available, a trend compounded by related pressure on independent research providers. While CAPIS applauds…

The Post-Floor Closure Debrief

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posted by CAPIS on 07/27/2020 at 4:35 pm
by CAPIS on 07/27/2020

Turbulent Markets Were Navigable Seas, Despite Overlapping Currents   The initial impact of COVID-19 and the ensuing implementation of shelter-in-place policies on the trading world has been widely reported, with a number of items getting heavy airplay. Some are obvious: extreme market volatility in March that saw the VIX breach 80, the increase in average daily moves across assets, and, now, the ensuing speed of the market’s recovery in a still elevated volatility regime. The Nasdaq has hit all-time highs and the S&P 500 has almost erased March’s losses. The other item that received much attention — attention only heightened by the history and symbolism ingrained in the institution — was the closure of the New York Stock Exchange’s trading floor.  (Note: The closure of the remaining American derivatives pits was notable as well, but those exchanges are less applicable to this equity-centric piece.) While the shutdown was indeed notable and historic, with all of the remaining floor broker trading volume (D-Orders) needing to port to some electronic workflow (MOC/LOC orders), from our perspective at CAPIS and given the feedback of our clients, it was a manageable and orderly shift. We were proactive across the board in communicating these developments…

Turbulent Markets Were Navigable Seas, Despite Overlapping Currents   The initial impact of COVID-19 and the ensuing implementation of shelter-in-place policies on the trading world has been widely reported, with a number of items getting heavy airplay. Some are obvious: extreme market volatility in March that saw the VIX breach 80, the increase in average daily moves across assets, and, now, the ensuing speed of the market’s recovery in a still elevated volatility regime. The Nasdaq has hit all-time highs and the S&P 500 has almost erased March’s losses. The other item that received much attention — attention only heightened by the history and symbolism ingrained in the institution — was the closure of the New York Stock Exchange’s trading floor.  (Note: The closure of the remaining American derivatives pits was notable as well, but those exchanges are less applicable to this equity-centric piece.) While the shutdown was indeed notable and historic, with all of the remaining floor broker trading volume (D-Orders) needing to port to some electronic workflow (MOC/LOC orders), from our perspective at CAPIS and given the feedback of our clients, it was a manageable and orderly shift. We were proactive across the board in communicating these developments…

CAPIS Views from Quarantine 4

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posted by CAPIS on 06/25/2020 at 3:12 pm
by CAPIS on 06/25/2020

Since March 16, CAPIS has transitioned to almost every employee working remotely, so we thought we’d share our home-office views and  how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. Previous “Views from Quarantine” posts:  1 | 2 | 3 Ray Prisco, Fixed Income Trader | Dallas, TX What’s the best part about the new working situation? A relaxed dress code and the significantly reduced commute time. What do you miss about working in the office? I miss overhearing the witty banter and market color among the fellow traders and the computer set up on the trading floor. How are you keeping yourself busy? I have been refining my culinary skills, spending time with my son, and Facetime/Zoom with family and friends. Best tip for working remotely? Avoid opening any potential malicious emails and having a strong wifi password! What would you say to those working on the COVID-19 front lines? We are trying to do our part to stay away and stay home so we don’t make a bad situation worse for all of you,…

Since March 16, CAPIS has transitioned to almost every employee working remotely, so we thought we’d share our home-office views and  how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. Previous “Views from Quarantine” posts:  1 | 2 | 3 Ray Prisco, Fixed Income Trader | Dallas, TX What’s the best part about the new working situation? A relaxed dress code and the significantly reduced commute time. What do you miss about working in the office? I miss overhearing the witty banter and market color among the fellow traders and the computer set up on the trading floor. How are you keeping yourself busy? I have been refining my culinary skills, spending time with my son, and Facetime/Zoom with family and friends. Best tip for working remotely? Avoid opening any potential malicious emails and having a strong wifi password! What would you say to those working on the COVID-19 front lines? We are trying to do our part to stay away and stay home so we don’t make a bad situation worse for all of you,…

CAPIS Views from Quarantine 3

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posted by CAPIS on 05/18/2020 at 3:25 pm
by CAPIS on 05/18/2020

Since March 16, CAPIS has transitioned to almost every employee working remotely, so we thought we’d share our home-office views and  how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. Previous “Views from Quarantine” posts:  1 | 2 Kelly Eskildsen, Equity Trading | Dallas, TX What’s the best part about the new working situation? My favorite part of working from home is the extra time I get to spend with my family.  I get to have breakfast with the kids! What do you miss about working in the office? I miss the conversations with my team and coworkers. How are you keeping yourself busy? (TV shows, hobbies, projects, etc.) With all of the elearning, I have become a substitute teacher for our 3 kids.  Thankfully my Algebra skills are still sharp. Best tip for working remotely? Wake up at the usual time.  I traded my commute in the car for a walk or yoga! What would you say to those working on the COVID-19 front lines? Thank you for your dedication to helping others!   Chris…

Since March 16, CAPIS has transitioned to almost every employee working remotely, so we thought we’d share our home-office views and  how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. Previous “Views from Quarantine” posts:  1 | 2 Kelly Eskildsen, Equity Trading | Dallas, TX What’s the best part about the new working situation? My favorite part of working from home is the extra time I get to spend with my family.  I get to have breakfast with the kids! What do you miss about working in the office? I miss the conversations with my team and coworkers. How are you keeping yourself busy? (TV shows, hobbies, projects, etc.) With all of the elearning, I have become a substitute teacher for our 3 kids.  Thankfully my Algebra skills are still sharp. Best tip for working remotely? Wake up at the usual time.  I traded my commute in the car for a walk or yoga! What would you say to those working on the COVID-19 front lines? Thank you for your dedication to helping others!   Chris…

CAPIS Views from Quarantine 2

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posted by CAPIS on 05/07/2020 at 12:11 pm
by CAPIS on 05/07/2020

Since March 16, CAPIS has transitioned to almost every employee working remotely, so we thought we’d share our home-office views and  how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. To view the previous “Views from Quarantine” post, click here. David Choate, COO, Executive Director of Global Sales | Dallas, TX What’s the best part about the new working situation? The 1-minute commute from kitchen to office What do you miss about working in the office? Meetings at the Crafty Irishman (pub) after the Close.  Does that count? How are you keeping yourself busy during shelter-in-place? (TV shows, hobbies, projects, etc.) Fishing!  There is a pond behind my house and it is easy to social distance while fishing. Best tip for working remotely? Use video conferencing.  Actually seeing another person is helpful What would you say to those working on the COVID-19 front lines? Thank you and stay safe!   Corey Ware, Equity Trading | Dallas, TX What’s the best part about the new working situation? The best parts about working from home are the commute,…

Since March 16, CAPIS has transitioned to almost every employee working remotely, so we thought we’d share our home-office views and  how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. To view the previous “Views from Quarantine” post, click here. David Choate, COO, Executive Director of Global Sales | Dallas, TX What’s the best part about the new working situation? The 1-minute commute from kitchen to office What do you miss about working in the office? Meetings at the Crafty Irishman (pub) after the Close.  Does that count? How are you keeping yourself busy during shelter-in-place? (TV shows, hobbies, projects, etc.) Fishing!  There is a pond behind my house and it is easy to social distance while fishing. Best tip for working remotely? Use video conferencing.  Actually seeing another person is helpful What would you say to those working on the COVID-19 front lines? Thank you and stay safe!   Corey Ware, Equity Trading | Dallas, TX What’s the best part about the new working situation? The best parts about working from home are the commute,…

CAPIS Views from Quarantine

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posted by CAPIS on 04/28/2020 at 4:24 pm
by CAPIS on 04/28/2020

Since March 16, CAPIS has transitioned to almost every employee working remotely. As we reach a month and a half of shelter-in-place orders, we thought we’d share our home-office views and give you a glimpse into how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. To view the next “Views from Quarantine” post, click here. Bill Steen, Institutional Sales | Dallas, TX What’s the best part about the new working situation? No traffic & my new 4 yr old CSR, Robi, who thinks I am here to entertain her. What do you miss about working in the office? The fellowship with good people and the sounds of activity. How are you keeping yourself busy during shelter-in-place? (TV shows, hobbies, projects, etc.) Walks & bike rides every evening with my beautiful granddaughter Robi. Golf on the weekends. Best tip for working remotely? Have an office with doors. What would you say to those working on the COVID-19 front lines? Thank you for what you do.   Stephen Lamendola, Chief Information Officer | Dallas, TX What’s the best…

Since March 16, CAPIS has transitioned to almost every employee working remotely. As we reach a month and a half of shelter-in-place orders, we thought we’d share our home-office views and give you a glimpse into how our employees have kept busy. We’ll continue to share more “CAPIS Views” in the coming days, so be sure to check back for updates here on the website or on our LinkedIn. To view the next “Views from Quarantine” post, click here. Bill Steen, Institutional Sales | Dallas, TX What’s the best part about the new working situation? No traffic & my new 4 yr old CSR, Robi, who thinks I am here to entertain her. What do you miss about working in the office? The fellowship with good people and the sounds of activity. How are you keeping yourself busy during shelter-in-place? (TV shows, hobbies, projects, etc.) Walks & bike rides every evening with my beautiful granddaughter Robi. Golf on the weekends. Best tip for working remotely? Have an office with doors. What would you say to those working on the COVID-19 front lines? Thank you for what you do.   Stephen Lamendola, Chief Information Officer | Dallas, TX What’s the best…

CAPIS EU Close – 11/12/2019

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posted by Clayton Duff on 11/12/2019 at 11:20 am
by Clayton Duff on 11/12/2019

Most indices closed better with the Stoxx 600 working to get back to 2015 highs with only a few points to go.  Volume there was off 16%.  That index is up over 20% on the year with most sector components seeing respectable gains.  Telco led, up 1.24% with Financials and Chemicals following.  Food names slipped on the session. On the eco front jobs data in the UK was mixed with with weekly earnings holding in fairly well.  Jobless claims ticked up but the unemployment rate edged a hair lower.  ZEW readings from Germany remained weak on the current situation side but saw subdued weakness for expectations. Driving the Telco space higher Iliad rallied 20% with the firm coupling their 3Q earnings report with word they are planning a €1.48B share buyback. Founder Niel will not tender any of his shares with their CEO noting Niel’s holdings in the firm could jump to 72% from 52%. While Infineon +6.2% reported stronger $q revs and earnings the company warned the the semi space will not return to growth until 2H’20.   Dialog Semi +6.8% upped their LT rev and gross margin views. To the downside Electrocomponents fell 11% with RBC noting results were…

Most indices closed better with the Stoxx 600 working to get back to 2015 highs with only a few points to go.  Volume there was off 16%.  That index is up over 20% on the year with most sector components seeing respectable gains.  Telco led, up 1.24% with Financials and Chemicals following.  Food names slipped on the session. On the eco front jobs data in the UK was mixed with with weekly earnings holding in fairly well.  Jobless claims ticked up but the unemployment rate edged a hair lower.  ZEW readings from Germany remained weak on the current situation side but saw subdued weakness for expectations. Driving the Telco space higher Iliad rallied 20% with the firm coupling their 3Q earnings report with word they are planning a €1.48B share buyback. Founder Niel will not tender any of his shares with their CEO noting Niel’s holdings in the firm could jump to 72% from 52%. While Infineon +6.2% reported stronger $q revs and earnings the company warned the the semi space will not return to growth until 2H’20.   Dialog Semi +6.8% upped their LT rev and gross margin views. To the downside Electrocomponents fell 11% with RBC noting results were…

CAPIS EU Close – 4/17/2019

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posted by Clayton Duff on 04/17/2019 at 12:54 pm
by Clayton Duff on 04/17/2019

Post a heavy night of economic releases including a better GDP reading out of China European markets again moved a bit higher but on higher turnover tonight.  Despite EU27 New Car Registrations down 3.9% in march Autos today led sector-wise with a gain of 1.62%.  Media and Insurers worked higher while Healthcare names were off nearly 2%. ABB rallied 5.4% with inline 1Q revs reported.  Markets though were focused on CEO Spiesshofer stepping down as his role there has been plagued by poor stock performance and tension with a large shareholder. Roche fell 1% despite upping their FY sales growth guidance.  The firm sees better growth with new drugs for MS and breast cancer treatments up and running.  Growth in China was also cited. Steel names ticked up with Vale’s restart of an iron ore mine pushing prices lower.  ArcelorMittal +4.1% and Thyssenkrupp +3.6% both moved up as they attempt to move out of month’s long bases. Post the close Kering reported solid 1Q #’s with organic revenue growth up 20%.  The firm sees Gucci growth at twice the pace of growth in the space but still slower than the trajectory it has been on. Tonight, Japan is out with…

Post a heavy night of economic releases including a better GDP reading out of China European markets again moved a bit higher but on higher turnover tonight.  Despite EU27 New Car Registrations down 3.9% in march Autos today led sector-wise with a gain of 1.62%.  Media and Insurers worked higher while Healthcare names were off nearly 2%. ABB rallied 5.4% with inline 1Q revs reported.  Markets though were focused on CEO Spiesshofer stepping down as his role there has been plagued by poor stock performance and tension with a large shareholder. Roche fell 1% despite upping their FY sales growth guidance.  The firm sees better growth with new drugs for MS and breast cancer treatments up and running.  Growth in China was also cited. Steel names ticked up with Vale’s restart of an iron ore mine pushing prices lower.  ArcelorMittal +4.1% and Thyssenkrupp +3.6% both moved up as they attempt to move out of month’s long bases. Post the close Kering reported solid 1Q #’s with organic revenue growth up 20%.  The firm sees Gucci growth at twice the pace of growth in the space but still slower than the trajectory it has been on. Tonight, Japan is out with…

CAPIS EU Close – 4/15/2019

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posted by Clayton Duff on 04/15/2019 at 12:40 pm
by Clayton Duff on 04/15/2019

As the US celebrates Tax Day and the fact that the average American still has more work days ahead to pay for said taxes European indices closed slightly higher. The skew concerning sectors was to the upside with Telcos leading while Basic Resources slipped.  The Energy complex finished off slightly with oil prices lower today. From this weekend the IMF said global growth was expanding at a slower pace than seen last October.  WTO reform needs and trade woes were cited with pledges from members to not devalue currencies to boost trade. They do see a firming of growth next year.  Associated with the meeting:  North Korea can join if they de-nuke and meet some economic-openess standards, Pakistan has supposedly reached a deal for an IMF bailout package, and Greece is on track to repay €3.7B in IMF loans early. Daimler -.3% underperformed the space on continued diesel-related investigations with 60k GLK SUV’s said to have been downloaded with emission-test-cheating software.   Said vehicles were already in focus within the prosecutor’s probe.  In other news the firm is producing an electric SUV with their Chinese partner BAIC. EDF +3% worked higher with French president Macron considering a partial renationalization of the…

As the US celebrates Tax Day and the fact that the average American still has more work days ahead to pay for said taxes European indices closed slightly higher. The skew concerning sectors was to the upside with Telcos leading while Basic Resources slipped.  The Energy complex finished off slightly with oil prices lower today. From this weekend the IMF said global growth was expanding at a slower pace than seen last October.  WTO reform needs and trade woes were cited with pledges from members to not devalue currencies to boost trade. They do see a firming of growth next year.  Associated with the meeting:  North Korea can join if they de-nuke and meet some economic-openess standards, Pakistan has supposedly reached a deal for an IMF bailout package, and Greece is on track to repay €3.7B in IMF loans early. Daimler -.3% underperformed the space on continued diesel-related investigations with 60k GLK SUV’s said to have been downloaded with emission-test-cheating software.   Said vehicles were already in focus within the prosecutor’s probe.  In other news the firm is producing an electric SUV with their Chinese partner BAIC. EDF +3% worked higher with French president Macron considering a partial renationalization of the…

CAPIS EU Close – 4/12/2019

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posted by Clayton Duff on 04/12/2019 at 12:47 pm
by Clayton Duff on 04/12/2019

Markets have taken a positive view of the strong Chinese export data despite the growing trade balance with the US.  Imports fell but Aggregate financing was a trillion yuan ahead of estimates.  European indices finished near highs with a stronger US market helping sentiment.  Autos continued to lead from earlier, up nearly 2% as were Banks. Basic Resources finished 120 bps better with roughly half of the sectors higher.  Healthcare finished down just over a percent.  Of interest, the ECB is not too keen on using tiered deposit rates but may instead consider negative rates to bank via a TLTRO. Carl Zeiss +6.6% holders viewed gains on a positive 1H and FY outlook.  EBIT margins are seen up 15-17%. Shortsellers cleaned up on Plus500 -31% today after 1Q revs disappointed.   The firm blamed extremely subdued markets along with customers being profitable as the company makes spread-betting. Thomas Cook slipped 4.6% on an ominous move by a creditor.  One of its lenders is looking to offload £25M in exposure on a facility due in 2022.  The offer was being made at a 30% discount. For Monday India reports trade data with Rightmove House Price moves in the UK.

Markets have taken a positive view of the strong Chinese export data despite the growing trade balance with the US.  Imports fell but Aggregate financing was a trillion yuan ahead of estimates.  European indices finished near highs with a stronger US market helping sentiment.  Autos continued to lead from earlier, up nearly 2% as were Banks. Basic Resources finished 120 bps better with roughly half of the sectors higher.  Healthcare finished down just over a percent.  Of interest, the ECB is not too keen on using tiered deposit rates but may instead consider negative rates to bank via a TLTRO. Carl Zeiss +6.6% holders viewed gains on a positive 1H and FY outlook.  EBIT margins are seen up 15-17%. Shortsellers cleaned up on Plus500 -31% today after 1Q revs disappointed.   The firm blamed extremely subdued markets along with customers being profitable as the company makes spread-betting. Thomas Cook slipped 4.6% on an ominous move by a creditor.  One of its lenders is looking to offload £25M in exposure on a facility due in 2022.  The offer was being made at a 30% discount. For Monday India reports trade data with Rightmove House Price moves in the UK.

CAPIS EU Close Recap – March 4th, 2019

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posted by Clayton Duff on 03/04/2019 at 1:00 pm
by Clayton Duff on 03/04/2019

European indices held in well in the face of US indices shaking off early moves and working lower.  Across Europe moves were subdued with a bias toward small gains on the day. Roughly 2/3 of the Stoxx 600 sectors closed better with Media and Construction up while Travel names lagged.  Volume in the Stoxx 600 was off 15%. UK construction names moved up despite UK Markit Construction PMI falling to under the expansion/contraction level. Ferguson +.6%, Bovis Home +1.4%, Persimmon +1.1%. Industrial firm Rotork closed down 3.5% after they announced slower growth is expected for this year.  Sales growth is seen as modest as the 1H missed YoY.  The firm is doing a system assessment to increase performance. Travel names lagged with IAG off 4.8% as they see free cash flow for 2019 under 2018 levels. From earlier: Nordea -3.5%, Ahold Delhaize -2.4%, Novo Nordisk -.3%, Fresenius Medical -2.2%, CNH +.5%, Daily Mail +4.5%. Tonight, Caixin PMI Services/Composite levels will be released in China and in Japan.  HK PMI is also out with the country hoping to move out contraction.  SK is out with GDP figures with the RBA to announce rates Down Under.  PMI readings are due as well…

European indices held in well in the face of US indices shaking off early moves and working lower.  Across Europe moves were subdued with a bias toward small gains on the day. Roughly 2/3 of the Stoxx 600 sectors closed better with Media and Construction up while Travel names lagged.  Volume in the Stoxx 600 was off 15%. UK construction names moved up despite UK Markit Construction PMI falling to under the expansion/contraction level. Ferguson +.6%, Bovis Home +1.4%, Persimmon +1.1%. Industrial firm Rotork closed down 3.5% after they announced slower growth is expected for this year.  Sales growth is seen as modest as the 1H missed YoY.  The firm is doing a system assessment to increase performance. Travel names lagged with IAG off 4.8% as they see free cash flow for 2019 under 2018 levels. From earlier: Nordea -3.5%, Ahold Delhaize -2.4%, Novo Nordisk -.3%, Fresenius Medical -2.2%, CNH +.5%, Daily Mail +4.5%. Tonight, Caixin PMI Services/Composite levels will be released in China and in Japan.  HK PMI is also out with the country hoping to move out contraction.  SK is out with GDP figures with the RBA to announce rates Down Under.  PMI readings are due as well…

CAPIS Global Markets 2/12/2019

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posted by CAPIS on 02/12/2019 at 12:53 pm
by CAPIS on 02/12/2019

Asian Markets The core Asian markets had a solid day especially Japan which need to play catch up following yesterday’s holiday.  Peripherals lagged.  Continued trade talk optimism is being given additional by a tentative budget/border agreement in the States.  The majority of sectors finished the day to the upside.  Healthcare led followed by gains of at least 1% among industrials, consumer discretionary, materials and IT.  Real estate was the only laggard of note giving ground by c. 0.3%. The BoJ is reducing JBG purchases in the 10 to 25 yr. maturity range.  The central bank is doing so to halt falling yields.  Ironically, today marks the 2o year anniversary of its extensive quantitative easy policy (CNBC). Other Headlines from the Region The healthcare gains were primarily drive by Chinese pharmaceutical companies.  China is pledging various incentives for companies to develop cancer and rare disease treatments. Toshiba -5.9% confirmed yesterday’s Nikkei report the company needed to cut it OP outlook. NCSoft’s -4.2% NI and OP are below the range of estimates.   Revenues are below consensus but at least within the range.  The company’s newer game offerings have lagged projections. Geely Auto’s +4.4% January sales rose 2%, beating estimates in both wholesale and…

Asian Markets The core Asian markets had a solid day especially Japan which need to play catch up following yesterday’s holiday.  Peripherals lagged.  Continued trade talk optimism is being given additional by a tentative budget/border agreement in the States.  The majority of sectors finished the day to the upside.  Healthcare led followed by gains of at least 1% among industrials, consumer discretionary, materials and IT.  Real estate was the only laggard of note giving ground by c. 0.3%. The BoJ is reducing JBG purchases in the 10 to 25 yr. maturity range.  The central bank is doing so to halt falling yields.  Ironically, today marks the 2o year anniversary of its extensive quantitative easy policy (CNBC). Other Headlines from the Region The healthcare gains were primarily drive by Chinese pharmaceutical companies.  China is pledging various incentives for companies to develop cancer and rare disease treatments. Toshiba -5.9% confirmed yesterday’s Nikkei report the company needed to cut it OP outlook. NCSoft’s -4.2% NI and OP are below the range of estimates.   Revenues are below consensus but at least within the range.  The company’s newer game offerings have lagged projections. Geely Auto’s +4.4% January sales rose 2%, beating estimates in both wholesale and…

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