Tesla Destroys Shorts

Following strong results, Tesla shares hit an all-time high, jumping nearly 79% over the past year. There have been a significant number of skeptics who were short, and the recent jump further exaggerated their losses. In fact, short sellers in Tesla have lost over $8 billion in the last five weeks alone. See article here, WSJ.

Unexpected Coronavirus Impact

The World Bank issued a pandemic bond in 2017. The bond provides funding for the development bank’s Pandemic Emergency Financing Facility (PEF) if a the severity of an outbreak of one of six viruses meets certain levels. This is similarly to an insurance catastrophe bond. See article here, Marginal Revolution.

Behind the Numbers

While it is important for economists and investment analysts to evaluate economic data, sometimes the surface data are not sufficient to tell the whole story. For example, check out this article (Yahooe! Finance) that examines some underlying elements of the unemployment rate.

Option Trading Activity Increases

Option activity has increased as online brokers have targeted ads and information toward new investors. Check out the article here, WSJ.

Biggest IPO Ever

The state-controlled Saudi Arabian Oil Co. (or, Saudi Aramco) just went public, raising $25.6 billion. Based on the 1.5% stake that was sold, the price puts the full company valuation at $1.7 trillion. This issue is now the biggest IPO of all time. See article here, WSJ.

The New Whiskey Dividend

When companies provide dividends in the form of products as opposed to actual cash, it is often referred to as a "whiskey dividend," since a distillery was one of the first companies to follow this approach. More recently, BrewDog (a Scottish craft brewer) floated the idea of a bond that pays coupons half in cash and half in beer. This may create a very loyal investor base. See article here, Yahoo! Finance.

Broker Price War

In a "race to the bottom," Schwab has rattled the industry with its latest decision to eliminate trading commissions on online stock trades. In response, other online brokers followed suit. See article here, WSJ.