Posts tagged 'Wine'

The regulatory repo contradiction

Courtesy of Bloomberg, a fine addition to FT Alphaville’s ongoing coverage of the “collateralise everything” trend:

Goldman Sachs Group Inc. (GS) accepted almost 15,000 bottles of fine wine as loan collateral from a former high-ranking executive, according to a regulatory filing last month. Andrew Cader, a former senior director at Goldman Sachs’s specialist-trading unit, pledged a secured interest in the wines, which are primarily from the Burgundy and Bordeaux regions of France, the filing showed. Read more

Wine loans: the curious cases of red inventory

Somewhere, on the shores of Switzerland’s Lake Léman — not far from the famous Geneva jet d’eau — is a high-security warehouse facility so impregnable and so discreet it could easily be used to store large volumes of gold bullion.

Yet for Stephen Burton, the founder of wine brokerage Bordeaux Cellars that’s not its most exciting attribute. He’s keen on the other more bespoke features, like climate control. Read more

Is the Lafite bubble about to pop?

Wine is not something FT Alphaville often writes about but we all need a break from the euro crisis, and this chart caught our attention. It’s the Liv-ex Fine Wine 50 index, which tracks the daily price movements of the most heavily traded commodities in the fine wine market — Bordeaux first growths. It has fallen off a cliff in the past few months.

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Lafite hits the fan

As markets in general turn a deeper shade of claret…

This passed us by: August was also a poor market month for fine wines. Really quite poor given their massive run in the last year. A snapshot of the benchmark indices via Liv-ex, the guardians of the market: Read more

You’re invited to…

Update: Neil Hume will be at the venue from 5pm for any early birds out there.

More venue information this way

Foster’s rejects $2.5bn bid for unit

Foster’s, the Australian drinks group, has rejected an unsolicited A$2.7bn ($2.5bn) cash offer for its wine business from an international buy-out group, reports the FT. The offer from the unidentified party could trigger the long-expected break-up of Foster’s, the country’s largest beer producer. Foster’s said on Wednesday that the proposal, which valued its Treasury Wine Estates unit at A$2.3bn-A$2.7bn, “significantly” undervalued the business. Analysts have valued the unit at more than A$3bn. Bloomberg adds that Foster’s shares rose more than 6% to A$6.44 in Sydney on Wednesday – their highest in two and a half years.

Wine doing fine

Things are looking up in the world of wine.

The industry’s leading benchmark, the Liv-ex 100 Fine Wine Index, rallied 5 per cent in August compared with the same period a month ago, to 225. The index has risen 10 per cent up year to date, but is 14 per cent down year on year. Read more

Vive le vin de Bordeaux

Since we’re on the subject of the French savoir vivre this morning: 2008 was supposed to have been a dreadful year for claret.

So much so that a not inconsiderable number of mechants shied away from the recent 2008 Bordeaux tastings altogether. That, married to a generalised sense of ennui to do with anything en primeur (which had produced overinflated prices for a disappointing 2007 vintage) and of course, the wider financial meltdown, meant that most were anticipating a significant dip in fine wine prices. Read more