An investment banking play for a potential M&A boom
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(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in financials while trying to understand the potential impact on the stock and bond markets if there is a U.S. government shutdown. ‘Worldwide Exchange’ Pick: Moelis & Co (MC) David Bahnsen of the Bahnsen Group said Moelis is great for investors looking to play the potential for mergers and acquisitions in coming months. “It’s a pure services business with investment banking, M & A, and yet they have no debt,” said Bahnsen. “We think it has huge potential in front of it. They’ve been hiring a lot of new bankers preparing for a next round of M and A. We think that this is just a wonderful company with very little balance sheet risk whatsoever. ” Moelis shares are lower year to date, but the company offers a dividend above 3.5%. The potential market impact of a U.S. government shutdown Henrietta Treyz of Veda Partners sees a 70% chance of a U.S. government shutdown at midnight on Oct. 1 that will create potential volatility in the equity and bond markets. “I think that there’s a lot of attention on the bond market.” said Treyz. “Bond market participants are heavily focused on this, and more importantly, they want to see this jobs data. It’s so critical for interest rates, and everybody’s relying on it, to the point we’re now putting a heavy emphasis on ADP data. I think maybe you’ll get a precursor to what the reaction would be on Friday when we see ADP data.” The September ADP private payrolls report is scheduled to be released on Wednesday at 8:15 a.m. ET. Perspective on the 25-25-25-25 Portfolio Michael Hartnett of Bank of America is making the case for investors to move past the traditional 60/40 portfolio and turn to a portfolio with 25% stocks, 25% T-bills, 25% Treasury and 25% gold to get higher returns. David Royal of Thrivent gave his take on the BofA portfolio: “That seems high at the short end. To have that position in gold, you really have to be concerned about inflation. I do think there are other ways to hedge against inflation.” He added: “You could be in a broad, diversified portfolio of material stocks, I think it would give you the same type of production.” According to BofA data, the “25-25-25-25” portfolio is on pace to beat the “60/40” portfolio this year and outperformed in 2024 as well. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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