Smartkarma Daily Briefs

• Kasumigaseki Capital (3498 JP), is looking to raise US$250m in a primary placement.
• The purpose is for financing of its medium-term management plan phase 2 which includes strengthening KC’s domestic hotel, logistics and healthcare businesses, and for expansions abroad (Dubai, US).
• In this note, we will talk about the placement and run the deal through our ECM framework.

• As reported by Brian Freitas, the JPX on Oct 27 suddenly announced that Nidec Corp (6594 JP) would be deleted from the Nikkei 225 and replaced by Ibiden (4062 JP).
• The date  of replacement is November 5, the Nikkei will experience passive flows, in this insight we want to have a look at the possible moves caused by this catalyst.
• At the moment the index is overbought, according to our models.

• FX and gold oil ratio have decoupled this year, leading to low volatility and focus on US data, exogenous shocks, and geopolitics in FX trading.
• Japanese Prime Minister Takaichi delivered a speech on economic policy, focusing on fiscal measures and debt reduction, without mentioning monetary or FX policy.
• Despite interventionist stance of Takaichi and Finance Minister Katayama, it is unlikely they will strongly intervene in BOJ policy, with expectations of a rate hike next week due to economic and market developments.

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• Context: Volatility cones provide a straightforward framework to evaluate whether options are trading cheap or rich. This Insight provides volatility analysis for the S&P/ASX 200 and ten prominent Australian stocks.
• Highlights: Implied volatility across Australia’s major banks remains rich ahead of earnings and the RBA decision.
• Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.

• Insignia Financial is in the midst of a significant transformation, focusing on simplification, cost reduction, and integration following the acquisition of MLC Wealth. The successful separation from NAB’s systems is a major milestone, expected to unlock cost synergies and operational efficiencies.
• Financial performance has been volatile, with a return to profitability in the most recent year after a significant loss. However, long-term trends in net income and EPS are negative, and the dividend has been suspended, reflecting the ongoing challenges and restructuring costs.
• The company’s forward strategy hinges on leveraging its scale to become a leading, efficient wealth manager by 2030, targeting substantial cost savings and driving growth through its four key business lines: Advice, Wrap, Master Trust, and Asset Management. Execution on this complex strategy remains the key risk and opportunity.

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• Verizon Business offers a new My biz plan with customizable mobile options starting at $25 per line
• Odd Thoughts podcast discusses big market stories, including the fall of the dollar, rise in gold prices, and enthusiasm for AI in the stock market
• Hyun Sung Shin of the Bank for International Settlements discusses the unusual market trends of the year and their implications.

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• AMGI Studios combines animation expertise with gaming technology to explore new entertainment formats.
• Its first title, My Pet Hooligan (MPH), is a multiplayer shooter with open-world gameplay, tokenized assets, and on-chain progression.
• To expand its audience, AMGI leverages Web3 and AI. Web3 features like $KARRAT tokens, NFTs, and an on-chain marketplace attract blockchain-native players and reward engagement, while Studio Chain is designed to support fast, scalable, and secure transactions.

• Anabuki Kosan is a diversified real estate company with a strong foothold in regional Japanese markets, primarily involved in condominium development, sales, and property management. The company’s integrated model provides a stable revenue base, though it faces challenges from declining profitability and highly volatile cash flows.
• The company’s shares appear attractively valued, trading at low price-to-earnings and price-to-book multiples. This is supported by a high Smartkarma Value score of 5/5, suggesting a significant discount to its intrinsic value.
• Despite steady long-term revenue growth, recent financial performance shows signs of stress, including negative net income in several recent quarters and deeply negative operating and free cash flows. This indicates potential operational inefficiencies or challenging market conditions impacting profitability and liquidity.

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• Dominant Regional Franchise with Strong Capitalization: Shizuoka Bank is one of Japan’s largest and most respected regional banks, boasting a commanding market share in its home prefecture of Shizuoka. Its credit ratings are among the highest for any Japanese financial institution, reflecting a strong capital base and sound asset quality.
• Poised to Benefit from Monetary Policy Normalization: After years of margin compression from the Bank of Japan’s (BOJ) ultra-low interest rate policies, the recent shift towards normalization presents a significant tailwind. Higher interest rates are expected to improve net interest margins (NIMs), a key driver of profitability for the banking sector.
• Structural Headwinds and Competitive Pressures Remain: The bank faces long-term challenges from Japan’s demographic trends, including a shrinking and aging population in its core operating region, which dampens loan demand. Competition is also intensifying from larger “megabanks,”other regional players, and non-bank financial institutions.

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• In today’s Morning Views publication we comment on developments of the following high yield issuers: Seazen Group, Meituan
• UST yields ended little changed on Friday, after unwinding declines earlier in the day following the weaker than projected CPI data. The UST curve marginally twisted steeper, with the yield on the 2Y UST down 1 bp to 3.48%, while that on the 10Y UST was unchanged at 4.00%. Equities advanced, as the soft CPI data affirmed market expectations for further Fed easing.
• The S&P 500 rose 0.8% to 6,792, and the Nasdaq climbed 1.1% to 23,205. US Treasury Secretary Scott Bessent said on Sunday that the US has worked out a framework agreement with China.