Hedgefund News Wrap: Week Ending 12/18/2015

HIKE IT UP , SAID THE FED

(CNN MONEY) – For the first time since 2006, and what seems like years of deliberating, the Federal Reserve has announced that it will raise interest rates by 25 basis points. In layman’s terms, it is increasing the target for short team interest rates to a range of 0.25% to 0.50%, from the previous range of 0% to 0.25%.

There’s no need to panic, as rates will be raised slowly. Also, if you’ve been putting your extra pennies in your piggy bank, it will finally start to get fatter as it will start to earn interested over the next couple years as rates start climbing higher.

This is not the best news for home buyers, as mortgage rates will start to raise. This comes at a time when millennials are known for renting later in their life than their parents, and this hike will most likely add to that.

As with most things, time will tell… Janet Yellen, we’re lookin’ at you.

Read the entire article at CNN Money
More coverage: CNBC and Forbes

 

“ESSENTIALLY… A PONZI SCHEME”  

(Bloomberg Business) – Martin Shkreli, a name that makes Wall Street cringe, has been arrested on securities fraud charges and people are celebrating. The infamous 32-year-old rose to “fame” recently by jacking up the price of a lifesaving pill from $13.50 to $750 and was even dubbed “America’s Most Hated Man.”

The money-hungry entrepreneur and Turing Pharmaceuticals CEO was charged by federal prosecutors for allegedly plundering Retrophin, a bio-pharmaceutical company he used to run, for personal gain. According to court documents, Retrophin filed a lawsuit against Shkreli in August stating that he used the company to “enrich himself” and pay off claims to other investors. When it comes down to it, the company is seeking $65 million in damages from the former manager.

Read the entire article at Bloomberg Business
More coverage: ABC News and The New York Times

HIV DRUGS FOR SALE – GOING, GOING, GONE – SOLD TO GLAXO

(Bloomberg Business) – GlaxoSmithKline Plc agreed to purchase Bristol-Myers Squibb Co.’s portfolio of experimental HIV treatments for as much as $1.46B. 

In the form of two transactions, Glaxo’s ViiV Healthcare unit will pay $317M in cash upfront for two drugs in late-stage development and another $33M for assets that in the preclinical or discovery phases of research.  In addition, another $587M in contingent milestone payments.

Read the entire article at Bloomberg Business
More coverage: The Wall Street Journal and MarketWatch