February 2025
- Bocconi Students Women in Finance
- Mar 25
- 12 min read
 Newsletter February 2025February Recap
Don’t miss out on our social media where we post our weekly tips, market news and market quizzes as well as stories of women that keep inspiring us!
News RecapUS Imposes New Sanctions on Iranian Oil By imposing further sanctions on a network of crews and tankers that facilitate the flow of Iranian oil to China, Trump’s administration is applying the greatest amount of economic pressure on Iran. Millions of barrels of oil are transported to China via Sepehr Energy. Sepehr Energy is an Iranian private joint-stock company focused on the development of the nation's oil, gas, and petrochemical industries. According to certain sources, Sepehr allegedly used a vast network of front companies to sell commodities (including but not limited to oil) to foreign buyers, thereby causing the destabilization of regional activities and the fostering of terrorist organizations. The United States claims that this is the reason why hundreds of millions of dollars are going to Iran's General Staff of Armed Forces. Furthermore, Treasury Secretary Scott Beesent claims that these oil earnings are used to finance Iran's nuclear program, which produces deadly ballistic missiles and unmanned aerial vehicles that help terrorist organizations in the region. The Trump administration intends to attack Iran in the similar way to how it has targeted specific Russian oil tankers in the past. More than 30 organizations and ships that participated in the sale and transit of Iranian petroleum were sanctioned by the Office of Foreign Assets Control (OFAC) of the Department of the Treasury on February 24th. These sanctions aim to completely cut off its oil exports, to limit the amount of money available for Iran’s nuclear and missile programs. China, Hong Kong, India, and the United Arab Emirates are among the places where the targeted entities are based. If the sanctions are as effective as the one’s enacted by Trump’s administration in the past, we can expect a significant drawback in Sepehr’s power to destabilize order and fund terrorism.
Crude Dips and Gas Volatility Amid Oversupply and Policy Caution – Global Energy Market Monthly Recap In February 2025, crude oil prices declined with Brent settling around $73 and WTI dipping below $69. Weakened economic data and easing geopolitical tensions, notably improved prospects for a Russia-Ukraine peace deal, weighed on demand expectations. Meanwhile, OPEC+ maintained production targets, though debates on potential increases and new supply coming from countries like Nigeria and Iraq added to an oversupply narrative. The natural gas market saw significant swings. In Europe, the TTF benchmark spiked to around €58/MWh early in the month amid a cold snap, then dropped to the low €40s as weather normalized and ample LNG shipments filled the gap. Asian LNG prices mirrored this decline, while U.S. Henry Hub prices stayed near $4.00 per MMBtu, supported by strong production and healthy storage levels. European power markets experienced early-month price surges due to severe cold, which later eased as robust renewable generation and reliable nuclear output, particularly in France, restored balance. In North America, most regions managed winter extremes well thanks to abundant renewables, while in Asia, strong solar and wind output helped counterbalance short-term demand fluctuations. Carbon credit prices softened as EU ETS prices fell below €75 per ton, influenced by milder weather reducing fossil fuel generation needs and improved energy supply conditions. Similar trends were noted in the UK and California markets, where regulatory uncertainty and oversupply tempered price levels. A strong U.S. dollar, high interest rates, and persistent inflation concerns cast a cautious tone across global energy markets. Sluggish economic growth in Europe and moderate demand in China reinforced this outlook, prompting investors to closely watch central bank policies and anticipate potential shifts in monetary stance as markets head into spring.
The Latest on Trump's Tariffs The Trump administration’s trade policy has been the talk of the town this month, with tariffs sparking fears of inflation, retaliation, and global trade disruption. As the situation continues to evolve with new developments unfolding rapidly, let’s take a look at the timeline of key events in this past month: Jan 20th: The Trump administration issues memorandum titled “America First Trade Policy”, mandating a review of the current US trade policies. Jan 21st: President Trump announces intention to impose 10% tariff on Chinese imports, and 25% tariffs on imports from Mexico and Canada, citing stopping illegal immigration and inflow of drugs. Feb 1st: Three executive orders were issued formalising these tariffs, set to be imposed on Feb 4th. Canada retaliates against ‘unjustified and unreasonable’ tariffs, announcing two rounds of tariffs on US imports. Feb 3rd: President Trump reaches a temporary agreement with both Canada and Mexico, putting tariffs on hold for one month. Feb 4th: The 10% tariff on China goes ahead. China retaliates with tariffs and export controls, taking effect Feb 10th. Feb 10th: President Trump imposes 25% tariff on steel and aluminium imports. Feb 13th: A memorandum on reciprocal trade and tariffs was issued, outlining a policy in which the US would impose the equivalent of a reciprocal tariff with respect to each trading partner. Feb 26th: President Trump threatens 25% tariff on EU imports, citing concerns over trade imbalances, with the EU saying it would react ‘firmly and immediately against unjustified tariffs’. Feb 27th: The administration confirmed the tariffs on Canada and Mexico will go ahead, and announced the 10% tariff on China will be doubled to 20%. Set for March 4th. While the landscape of global trade remains highly uncertain, it is clear that the Trump administration’s tariff policies will have worldwide economic ripple effects.
Dealflows & IPOsMusk's Bid for Open AI Following ChatGPT’s launch in 2022, the platform’s success has attracted numerous potential buyers looking to invest in the growing technological industry, specifically OpenAI. Founded in 2015 by its current CEO Sam Altman, OpenAI was started as an artificial intelligence research organisation with a non-profit mission. However, the rise in importance of this field, especially recently following the increased competition posed by DeepSeek as well as for future speculations, its increased popularity has led to potential investors seeking to invest and to acquire the company. Specifically, as the company was initially founded between Altman and Elon Musk, Musk has recently attempted to acquire the organisation. On the 10th February, Musk announced his intention to acquire the platform with a bid of nearly $100 billion. However, this feud between the two contending parties is not new as, over the past years, Musk filed a series of legal complaints against the company and Altman, claiming that the AI company and its leadership have misrepresented OpenAI as a philanthropy. The large bid did lead many to think Altman would agree, however, through a brief post on X, he replied to Musk with “no thank you but we will buy twitter for $9.74 billion if you want.” As justification OpenAI’s owner argued that he preferred to prioritise the organisation’s mission of nonprofit and a controlled production of artificial intelligence which could pose a serious threat to humanity. Contrastingly, Musk highlighted that he would only acquire the company for the potential profit in the future, causing the deal to fail and for Musk to withdraw his bid. In this occurrence, it is clear that OpenAI holds a strong position economically to be able to refuse high level deals with the potential value it holds, however it does not suggest that the company will be unwilling to accept future deals.
$150 million IPO for Kestra Medical Technologies Kestra Medical Technologies, a Kirkland, Washington-based company specializing in wearable cardiac devices, has officially launched its initial public offering (IPO). Founded in 2014, Kestra focuses on developing innovative medical technologies to protect and support at-risk cardiac patients. Its flagship product, the ASSURE® Wearable Cardioverter Defibrillator (WCD) is designed to monitor individuals at risk of sudden cardiac arrest. Since its full commercial launch in August 2022, the ASSURE® system has been prescribed by over 550 hospitals across the United States and has been worn by more than 17,000 patients. Despite generating $45.8 million in revenue, Kestra reported a net loss of $84.8 million, reflecting both the challenges of scaling a medical technology company and its aggressive expansion efforts. Now, the company is looking to raise approximately $150 million through its IPO, offering 10 million common shares at an expected price range of $14.00 to $16.00 per share. Additionally, underwriters have a 30-day option to purchase up to 1.5 million extra shares. Kestra plans to list on the Nasdaq Global Select Market under the ticker symbol "KMTS." The funds raised from the IPO will be directed toward expanding Kestra’s product offerings and market reach. This includes further development of its cardiac recovery system platform, which integrates monitoring, therapeutic treatment, digital health, and patient support services into a unified solution. The IPO is being underwritten by Bank of America, Goldman Sachs, and Piper Sandler as lead bookrunners, with Wells Fargo Securities and Stifel acting as bookrunners, and Wolfe | Nomura Alliance serving as co-manager. Bain Capital, one of Kestra’s major investors, holds a significant stake in the company. Shift4's signing of a $1.5 billion deal to acquire Swiss Paytech Global Blue US-based payment processing company Shift4 has successfully acquired Global Blue, a Swiss-based firm, for approximately $2.5 billion. Founded in 1980, Global Blue operates in 52 countries, providing tax-free shopping, payment, and post-purchase solutions for retailers, acquirers, and hotels. As part of the deal, Shift4 paid $7.50 per common share—15% more than Global Blue’s closing share price on February 14, 2025. The acquisition was funded through Shift4’s cash reserves and a $1.795 billion bridge loan from an undisclosed lender. Following the acquisition, Global Blue delisted its common and preferred stock from the New York Stock Exchange, where it had been publicly traded since 2018. The transaction was approved by both companies’ boards and was finalized in the third quarter of 2025. Shift4 has integrated Global Blue’s tax refund and currency conversion services into its payment platform, aiming to help merchants attract high-spending international shoppers. Meanwhile, Ant International and Tencent remained shareholders in Global Blue and explored strategic partnerships with Shift4, focusing on global e-commerce payment solutions, including the distribution of Alipay+ and China’s Weixin Pay through Shift4’s system. The acquisition continued Shift4’s recent expansion strategy, which also included the purchases of German POS company Vectron Systems AG, Canadian fintech Givex, and UK paytech Card Industry Professionals in December.
Analysis of the MarketsHong Kong Stock Exchange Achieves Record Profits Following China's Economic Stimulus Hong Kong Exchanges and Clearing (HKEX) saw a record high annual profit of HK$13.05 billion (US$1.67 billion) in 2024. Its net income has risen by 10% due to the huge spike in turnover on its cash, derivatives, and commodities markets. The exchange's average daily turnover increased by a record 26%, to HK$131.8 billion. Specifically, the Initial Public Offering (IPO) market also recorded remarkable growth, with 71 new listings raising HK$88 billion, an astonishing 90% increase from 2023. Furthermore, the Stock Connect program played a key role in driving the growth, with northbound trading volumes increasing by 39% to 150.1 billion yuan and southbound trading volumes increasing by 55% to HK$48.2 billion. All of these added together caused the total revenue and other income to rise 9%, bringing them to HK$22.4 billion overall. This record-high profit despite a challenging global economic environment reveals directly that the financial markets in Hong Kong are on the rebound. Favorable monetary easing, improved sentiment, and positive stimulus measures from the Mainland China have all contributed to driving a revival of investor sentiment, as evident in the surge in trading volume and initial public offerings. Such strong performance not only reasserts Hong Kong's status as one of the world's leading IPO hubs but also points to how popular the market is becoming with Chinese IT companies and new economy sectors. HKEX is well positioned to further solidify its position as a major bridge between Mainland China and international capital markets, with more than 100 listing applications pending review and streamlined listing procedures available for specialized technology companies.
State Street and Apollo's Private Credit ETF State Street Global Advisors and Apollo Global Management have launched the SPDR SSGA Apollo IG Public & Private Credit ETF, the first ETF to blend public and private credit. State Street, one of the largest US-based ETF issuers, sponsors the fund, while Apollo sources private credit investments. This launch is considered groundbreaking, as it allows retail investors to access a booming asset class that has traditionally been reserved for institutions. Rivals are closely analyzing its performance, as many are preparing to launch competing funds. Expected to hold 10-35% private credit, the ETF bypasses the SEC’s 15% illiquid asset cap through a liquidity arrangement in which Apollo agrees to buy back private credit holdings. However, concerns have emerged regarding its regulatory compliance. The SEC has raised issues about liquidity, valuation transparency, and Apollo’s dual role as liquidity provider and pricing agent. In fact, as Apollo functions as the buyer, seller and the pricing agent, potential conflicts of interest arise, and the firm has an undisclosed daily limit on buybacks. Hence, questions are being asked about how the ETF would perform during periods of heavy redemptions. Nonetheless, despite these regulatory hurdles, the product remains first of its kind, and there is growing demand for private credit ETFs. State Street and Apollo are addressing the SEC’s concerns, and the outcome may set a precedent for future hybrid ETF structures.
Technicals Explained: Credit Default SwapsImagine you are buying a house, and you need a mortgage. For the next years, you are going to pay back the loan, but what if you cannot pay everything back? What if you lose your job? What if the interest rate rises higher than expected? For the bank to make a profit, the loan principal and the interest rate must be paid. Is there a way for the bank to ensure it will be reimbursed if you are unable to make the payments? There is a potential third party in this process, insurance companies. The bank can pay a part of their profit as periodic premiums to the insurance company, and in return, the insurance company has to cover the bank´s losses in case you are not able to repay your mortgage. Essentially, the insurance company is willing to take on more credit risk in exchange for a premium. This is called a Credit Default Swap (CDS). In this scenario, the borrower is often referred to as the “reference entity”, so in other words, a CDS is a financial derivative contract in which one party agrees to pay periodic premiums to another party in exchange for protection against the risk of a default or credit event by a reference entity. What happens if too many of the reference entities default on their loan? All of a sudden, the insurance company is responsible for more credit defaults than they can manage, and as a consequence, the banks that rely on this coverage may experience losses. We saw this situation take place leading up to the financial crisis in 2008.
After years of decline, credit default swaps are making a strong return. Once a key tool for managing credit risk, their market shrank after the 2008 financial crisis due to tighter regulations and skepticism. Many banks, including Deutsche Bank, exited, and investors favored broader hedging strategies. Now, CDS are surging again as investors refocus on individual credit risk. Market concerns have grown following President Trump’s comments suggesting the U.S. might reconsider certain debt obligations, alongside proposed tariffs that are prone to disrupt economic stability. Adding to the unease, the Department of Governance and Election Integrity recently gained access to Treasury data, raising fears of government overreach. Meanwhile, global credit risks are rising. According to JPMorgan, there will be a 5% default rate in 2025, putting pressure on big issuers like Thames Water and Altice France. In January 2025, fully electronic U.S. credit trading increased 5.0% year-over-year to $7.5 billion per day, while credit derivatives trading increased 60.2% to $15.5 billion, indicating that investors are turning to CDS for protection. CDS are once again a vital tool for controlling credit risk in light of growing political and economic unpredictability.
Woman of the Month: Claudia ParzaniClaudia Parzani, Chair of the Italian Stock Exchange, is February’s woman of the month. A trailblazer in law and corporate leadership, Parzani is constantly breaking barriers. Being a corporate lawyer specialising in corporate governance and strategy, Parzani has played a role in shaping Italy’s corporate landscape, advising major banks and corporates on complex transactions. Graduating magna cum laude, Parzani built an impressive career at Linklaters, where she became partner. She also serves as Deputy Chair of Il Sole 24 Ore, an Italian financial newspaper, and non-executive director at Stellantis N.V., a multinational automotive manufacturing company. Beyond the boardroom, Parzani is a key advocator of inclusion and female empowerment. She founded Breakfast@Linklaters, a large network dedicated to supporting female executives, and serves as Italy’s ambassador for the Inspiring Girls campaign, which encourages young women to pursue ambitious careers. Her work has earned her a spot on the global HERoes Women Role Model List for seven consecutive years. Claudia Parzani’s story is one of dedication. As she puts it, “Every time we have the courage to embrace a challenge, we have already won”. 2 Truths & 1 LieResults will be posted to Instagram!
WiF Recommends |
Unlimited Power by Anthony Robbins is a book on personal empowerment and success. It explores how individuals can deploy the power of their mind to achieve their goals, emphasizing strategies for effective communication, self-development, and leadership. The book provides actionable insights into how mindset shifts can drive both personal and professional success. Market Mover is a podcast by Il Sole 24 Ore that delivers daily financial insights, covering macroeconomic trends, market movements, and investment strategies. It is highly recommended for those looking to stay updated on the latest developments in global markets. Margin Call is a financial thriller directed by J.C. Chandor. The film provides a captivating inside look at a Wall Street investment bank during the early hours of the 2008 financial crisis. It offers a dramatic exploration of risk, ethics, and corporate decision-making in the face of economic collapse. |
What’s next?We are soon ready to wrap up our spring recruitment season and can’t wait to welcome new members in March! Follow us on Instagram to catch all the action and the latest news on WiF. |
Comments