Pay me in sausage rolls

And steak bakes. Maybe some doughnuts too…

Author

Tim Vollans
January 10, 2024 • Estimated Reading Time: 5 minutes

⚡ The Spark
Pay me in sausage rolls

And steak bakes. Maybe some doughnuts too…

Because Greggs has conquered the UK.

“Greggs is gaining market share (almost £2 of every £100 spent in UK hospitality is going to Greggs – up from previous figure of £1.60)”

Channel 9 Reaction GIF by Married At First Sight

It’s food insanity. And they’re not stopping.

Even on the back of a year that saw sales grow by a stonking 19.6%, raking in £1.8 billion, and the opening of 220 new locations, they’re still hungry for more.

There are currently 2,472 Greggs trading (FT), and Chief Executive Currie is aiming to hit 3,000 or more in coming years.

“2023 was a year of further progress by Greggs… as we continue to grow our shop estate and offer greater availability through digital channels and extended trading hours.”

"We enter 2024 with plans to continue to invest in our shops and expand supply chain capacity to deliver the growth strategy, supported by our strong balance sheet.”

Greggs shares are currently up by 5.5% on the day, now trading back above the 200 day moving average…

Not saying we told you so, but y’know… 👇

We REALLY did…

@fink.tok

This #ukcompany is a MASSIVE brand and is absolutely my favourite stock right now. They make a BILLION per year. From cakes and croissants. Insane.

🧠 The Big Brain
Everything Is Immoral

Doesn’t mean you shouldn’t do it…

Yesterday’s outrage over the Bet365 CEO and her enormous salary got me thinking.

Is there anything that isn’t immoral?

Especially in markets, where morals usually appear below “making money” on the to-do list.

Then I realised that EVERYTHING is immoral if you think about it enough.

More importantly, there’s ways to (morally) make money from other peoples interpretations of morality…

Pro Premium Members: click here to read

_____ 🚨 MEGA LIFETIME OFFER (THREE LEFT!) 🚨 _____

đź’ˇ The Lightbulb
There’s no such thing as a free lunch

Unless you’re a bank…

Remember when the US banking system was about to collapse?

All the tech bro’s were crying because they (allegedly) orchestrated a run on Silicon Valley Bank and forgot to take their cash out first?

We do. If you want a catchup, read this 👇

đź’µ The MILF at Silicon Valley Bank

Big Brain Investing

pro.fink.money/p/milf-silicon-valley-bank

Anyhow, in response to this, and other regional banks struggling with liquidity in a fast-changing interest rate environment, the Fed launched the BTFP, (Bank Term Funding Program).

This facility allowed banks to post bonds and other collateral, in exchange for cash, massively easing any liquidity issues.

Those same assets, if redeemed at current market values, would result in huge losses.

If held to maturity, as intended, the full value would be returned.

The Fed facility bridged that gap in time, and solved the immediate problem.

At the time, this solution came at a cost.

Specifically, the one-year overnight index swap rate plus 10 basis points.

When rates were expected to rise in future, that meant banks borrowing at a higher interest rate than they could reasonably generate.

Now that the market’s pricing cuts for a year ahead, that rate has fallen.

In recent months, banks have been taking advantage…

Borrow the blue line rate. Receive the green line rate. Profit.

Eligible institutions have found it cheaper to borrow cash through the nascent facility, paying about 4.93%, with the opportunity to park that cash in an account at the central bank that earns 5.40%.

So, maybe there is such a thing as a free lunch after all…

Until March 11th, when the facility is set to expire. Fed’s Barr & Bowman have both highlighted this in recent speeches.

Fun while it lasted…