--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


Ebix CEO bonus and more about the BRICS ?4

10:59 26-Sep-23


Ebix notified investors last night that its CEO is receiving a $1.8M bonus just days before its debt arrangements are set to expire.  I can't say for certain whether this is an unforgivable cash out before the company hits the rocks, or a sign that some sort of deal is imminent.  However, the company is generating bad press as it ranks 3rd in unfair pay.  Consequently, it appears to be struggling to fill positions in India, even for jobs involving legacy technology.  EBIX shares are down big again to trade around $10.

More broadly, I note the dollar stabilizing below €/$1.06 and look for further strengthening toward parity, even if the face of American debt problems.  Such moves function as a headwind for stocks in the short term, but they are even more troublesome for developing economies, unless the BRICS can revive efforts to establish an alternate, gold-backed currency, which seems unlikely.  Though there is no theoretical impediment, the move would force accountability from regimes which have enjoyed having none.  We'll see how desperate they get, but in the meantime, I note that most NDB loans are denominated in dollars, and even those in local currencies use dollar rates for settlement.