Credit Suisse Slumps After Warning of Third Straight Loss [Bloomberg]
The firm is also weighing a fresh round of job cuts as it pledged to accelerate its effort to reduce expenses…. While rival banks have said in the past week that their traders are navigating the wild markets well, Credit Suisse’s trading and dealmaking unit has been hit by widening credit spreads and a drop in bond and stock issuance….
The expected loss -- announced with the firm’s sixth profit warning in the past seven quarters -- adds to pressure on Chief Executive Officer Thomas Gottstein.
Spirit Airlines postpones shareholder meeting to continue deal talks with Frontier and JetBlue [CNBC]
Spirit’s announcement came two days after JetBlue sweetened its offer for the discount airline, which has had a merger agreement in place with fellow budget carrier Frontier since February…. Spirit has repeatedly rebuffed JetBlue’s offers and said that an acquisition would be unlikely to pass muster with regulators, while JetBlue has contended both deals would face scrutiny from the Justice Department
Investors hoping to pounce on summer IPOs may be out of luck. Here’s why. [MW]
There were just seven IPOs in May that raised an aggregate $1.1 billion to mark the slowest month for new deals in more than five years…. The typical flurry of deals that tend to come after the Memorial Day weekend failed to materialize, with just Hong Kong–based online brokerage Zhong Yang Financial Group coming to market last week. That deal priced at the low end of its range to raise $25 million at a valuation of $175 million….
“There’s a vintage of deals that are getting cheaper and doing well, and that may be a light at the end of the tunnel,” [IPOX Schuster founder Josef] Schuster said. “Founders are being more selective, and investors are being more selective, so things are becoming more rational, which may mean a turnaround later this year.”
European Central Bank poised to signal July rate hike as inflation jumps to fresh record high [CNBC]
“A handful of Governing Council members are already open to a 50bp hike,” said Mark Wall, a chief economist with Deutsche Bank, in a research note.
“We believe the ECB is continuing to underestimate inflation and we expect support for a 50bp hike will increase as the summer progresses.”
Magnetar Capital's founder Litowitz steps down [Reuters via Yahoo!]
Co-founder Ross Laser will remain as president, while David Snyderman, chief investment officer of Magnetar's alternative credit and fixed-income unit, was appointed managing partner.
Litowitz, 55, said in a statement he will continue as both an owner and an investor in Magnetar's funds, while also counseling the firm.
Crispin Odey Hedge Fund’s 110% Gain in Five Months Wipes Out Years of Losses [Bloomberg]
Last month, the Odey European Inc. hedge fund made 14%, boosting returns for this year to 110%, according to an investor document seen by Bloomberg News. Combined with a 54% surge last year, the fund is now above the level set in 2015, marking a full recovery and allowing it to charge incentive fees…. Odey’s bearish bets during a protracted bull market for stocks led to a 68% plunge in his flagship hedge fund between 2015 and 2020. He changed his fortunes with highly leveraged short wagers on long-dated government bonds as spiraling inflation sent yields surging.