Daily Brief - 12 Apr 2024

This ETF will be music to your ears

The music world was rocked by the arrival of MP3s two decades ago, causing a big drop in revenue. But, like a band on a comeback tour, the industry has cleverly found new ways to earn cash.

Enter the MUSQ Global Music Industry ETF, a fresh investment opportunity that's making noise in the financial markets. On a recent episode of the podcast Trillions, hosts Joel Weber and Eric Balchunas chatted with David Schulhof, the brains behind this ETF. They dived into the stocks it includes, the industry's growth from streaming to live concerts, and even touched on the "Taylor Swift economy."

Schulhof, with his rich background in music, shared insights on the evolving quality of music over the years. It's an exciting time for music lovers and investors alike, as this ETF promises a new way to engage with and benefit from the beats that move us.

VistaJet earnings take a slight dip around 5%

VistaJet, faced a challenging year with its earnings taking a slight dip by about 5%, despite a revenue boost of 7%. The company, spearheaded by founder Thomas Flohr, grappled with increased fixed costs and a rising debt load, now standing at $3.9 billion.

2023 was marked as a transitional phase for VistaJet, focusing on integrating acquisitions and refurbishing its fleet amid fluctuating fuel prices and geopolitical tensions. Despite these hurdles, VistaJet boosted its liquidity significantly and added new members to its subscription service, underlining its resilience and strategic foresight in a volatile market.

Flohr remains optimistic, banking on his substantial stake in the company to improve its financial health and maintain its competitive edge against rivals like NetJets.

Wall street recaptures $16 billion in financing

Wall Street is making a strong comeback, reclaiming around $16 billion in deals from the private credit sector as borrowers opt for the more affordable public loan options. This shift, spurred by a rally in credit markets, has seen companies like Thryv Holdings and Encora Digital move away from direct lenders to secure traditional leveraged loans at more favorable rates.

The trend is a response to the private credit market's higher costs and stricter covenants, allowing businesses to benefit from lower interest rates and more lenient terms in the syndicated loan and bond markets.

Amidst this competitive landscape, private lenders are adjusting their strategies by offering better terms to retain their clientele. However, this shift raises concerns about potential risks and the weakening of investor protections as the battle for deals intensifies between public and private lenders.