In today’s briefing:
- Japanese Banks – Our Picks for a Steepening Yield Curve
- Shroom Shmooz – A Guide to Psychedelics
Japanese Banks – Our Picks for a Steepening Yield Curve
- BoJ’s tweaking of yield curve controls places Japanese financials on a more positive investment footing, and given the modest valuations, there is healthy potential for further re-rating
- We assess the large-cap and select mid-cap Japanese commercial banks’ exposures to JGBs and foreign sovereign bonds and their loan books’ gearing to the prospect of higher rates
- We see value, in particular, in Resona, Mizuho and SMFG with attractive valuations supported by modest LDRs, good loan sensitivity to higher rates and relatively modest exposure to JGBs
Shroom Shmooz – A Guide to Psychedelics
- An inflection point for psychedelics. With the legalization of 3,4-Methylenedioxy- methamphetamine (MDMA) to treat post-traumatic stress disorder (PTSD) possibly less than 12 months away, acceptance of psychedelics as a viable option for more effective treatment of psychiatric disorders is a fast-approaching inflection point.
- In fact, some might argue that we are already at this point, with S-ketamine-based Spravato, the first psychedelic-like treatment to be FDA approved to treat a mental disorder, seeing explosive growth in uptake in recent quarters.
- Spravato has grown to be a near-$700 million market. As access and payor reimbursement for the treatment continue to expand, Spravato is on track to become a $1 billion-plus market in the not-too-distant future.
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