Four federal agencies are looking into alleged aggressive and misleading sales tactics at the company; banks are worried about doling out fat payouts as millions of people are suffering.
Credit Funds From Apollo to Diameter Tally Big Gains in 2020
Bloomberg 1/8/2021 Katherine Doherty, Sridhar Natarajan and Katia Porzecanski
(Bloomberg) They swooped in to buy the debt of pandemic-battered airlines and cruise companies. Some got in on the lucrative role of funding Hertz Global Holdings Inc.’s bankruptcy reorganization, while others made wagers against commercial real estate. Now, some of the most seasoned distressed-debt traders are totaling up big gains.
Funds run by firms from Knighthead Capital Management to Diameter Capital Partners and Apollo Global Management notched returns that in some cases are approaching 50% after capitalizing on last year’s pandemic-induced market turmoil. While not necessarily the financial world’s biggest winners in a wildly volatile year that produced a more than 16% gain in the S&P 500 Index, they outmatched peers. Distressed debt funds on average gained 11.4%, according to Hedge Fund Research Inc., while
Jan. 7, 2021 7:30 am ET
With people traveling less and spending more on digital platforms, banks with big credit-card units may have lost some relative luster with investors. But they still have cards to play.
JPMorgan Chase JPM 1.58% recently acquired the global loyalty division of cxLoyalty Group Holdings. That business serves credit-card rewards programs and helps connect them to a number of ways that rewards can be used.
The move suggests in part that JPMorgan Chase sees travel and cards continuing a long-running association, and the deal includes travel services. Americans may have started using different cards or scrambled to find other uses for points in 2020, and lenders have responded by upping rewards for activities such as grocery shopping and streaming. But many firms are betting that a pent-up desire for escape still exists, and spenders will be eager to use points as much as ever once more movement is feasible.
Share this article
Share this article
STAMFORD, Conn., Dec. 31, 2020 /PRNewswire/ cxLoyalty Group Holdings, Inc. ( cxLoyalty Group Holdings ) today announced the closing of the previously announced sale of its Global Loyalty division ( cxLoyalty ) to JPMorgan Chase & Co. (NYSE: JPM) ( JPMC ). The Company will operate under the Global Customer Engagement division and will be headquartered in Stamford, CT.
The transaction includes cxLoyalty s leading technology platforms, full service travel agency, gift card, merchandise, and points bank businesses. cxLoyalty will operate as a business unit within JPMC. The transaction excludes cxLoyalty Group Holdings Global Customer Engagement division and other ongoing businesses. Today marks an important next chapter for the Global Customer Engagement business, said Greg Miller, who will lead the Global Customer Engagement Division going forward. We are excited to be in a position to expand our product roadmap without capital constraints
The motivation behind JPMorgan Chase's purchase of rewards company cxLoyalty is clear travel spending and rewards have suffered greatly during the pandemic but another problem Chase is tackling with this acquisition is the need to wean people off of cash rewards.