Good Morning! Private equity firms like KKR are scheming ways to delay interest payments by asking for more PIK debt. Coffee giant La Colombe is being acquired by greek yogurt maker Chobani for $900 million. Plus reasons your streaming bill got a lot more expensive in 2023, the perfect time to kick start new habits, and a 9-step sleep routine that'll have you waking up feeling fresher than ever, and Jeff Bezos’ interview with Lex Fridman.

Looking to put that bonus to work? Masterworks enables its 840k+ users to invest in artworks by artists like Banksy, Basquiat, and Picasso.

_{SQUEEZ OF THE DAY}

Citi’s Christmas Gift

Citi is definitely feeling the holiday cheer this year. CEO Jane Fraser just gifted the entire firm the freedom to work from home anywhere in the U.S. for the last two weeks of 2023.

But there’s just a twist. When Citi bankers stroll back into 388 Greenwich Street come January, some of their desk buddies might be MIA and laid off.

Citi bankers have been through the wringer this year. The bank unleashed its financial overhaul plan Project Bora Bora, which is a code for mass layoffs. 

The bank says layoffs should be complete by March 2024. But hundreds of managers already got the boot a few weeks ago. And Citi just pulled the plug on its municipal bond business, which used to be a Citi specialty.

Takeaway: Citi’s stock has been struggling over the past five years. And we’ve seen a shift this year in how bank CEOs prioritize shareholders over their investment banking divisions. Everyone loves investment banking revenue in bull markets but it’s not the same when deal making dries up. Consequently, banks are figuring out ways to build steady, recurring revenue streams.

_{SPONSORED BY MASTERWORKS}

This surprising investment was bought for $19K and sold for $110M

When a New York City real estate developer purchased an untitled painting from Jean-Michel Basquiat for $19,000 in 1983, he definitely wasn’t expecting a 5,798x return on his investment. But that's exactly what happened when he sold the work for a stunning $110,000,000 in 2017. 

Now, everyday investors are unlocking access to the very same market thanks to the award-winning art investing platform Masterworks. 

Masterworks’ nearly $1 billion collection includes works by greats like Basquiat, Banksy, and Picasso, all of which are owned by everyday investors. When Masterworks sells a painting, investors could get a return on their investment. 

Shares of every offering are limited, and can sell out in minutes, but Short Squeez readers can skip the waitlist to join with this exclusive link.

_HEADLINES

Top Reads

• Private equity’s solution to higher debt costs is to borrow and defer payments (BB)

• Corporate debt defaults have been climbing all year (Axios)

• 2023 was the year your streaming bill got a lot more expensive (YF)

• AI job losses are rising, but the numbers don’t tell the full story (CNBC)

• Citigroup is dismantling another piece of its Sandy Weill empire (YF)

• U.S. economy is expected to pull off a soft landing in 2024 (Axios)

• Why ‘eggflation’ might be coming back soon (CNN)

• How Taylor Swift became part of this year’s economic story (YF)

• It’s Biotech stocks’ time to shine (WSJ)

• Ohtani and the attraction of deferred income (Axios)

_{CAPITAL PULSE}

Markets Rundown

The stock market rally took a breather on Friday.

Movers & Shakers

• (+) Costco ($COST) +4% after the grocery chain reported earnings.

• (–) Roku ($ROKU) -7% after a downgrade by MoffettNathanson.

• (–) Scholastic ($SCHL) -12% after posting a year-over-year decline in revenue.

Private Dealmaking

• Campari Group bought Courvoisier Cognac, a liquor brand for $1.2 billion

• Greek yogurt maker Chobani buys La Colombe for $900 million

• Qogita, a procurement platform for retailers, raised $87 million

• Parse Biosciences, a Seattle-based biotech, raised $50 million

• Andalusia Labs, a risk infrastructure startup, raised $48 million

• Eligo Bioscience, a gene-editing startup, raised $30 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Empty Planet

For half a century, statisticians, pundits, and politicians have warned that a burgeoning population will soon overwhelm the earth's resources. But a growing number of experts are sounding a different alarm.

Rather than continuing to increase exponentially, they argue, the global population is headed for a steep decline—and in many countries, that decline has already begun.

In Empty Planet, John Ibbitson and Darrell Bricker find that a smaller global population will bring with it many benefits: fewer workers will command higher wages; the environment will improve; the risk of famine will wane; and falling birthrates in the developing world will bring greater affluence and autonomy for women.

But enormous disruption lies ahead, too. We can already see the effects in Europe and parts of Asia, as aging populations and worker shortages weaken the economy and impose crippling demands on healthcare and social security.

The United States and Canada are well-positioned to successfully navigate these coming demographic shifts--that is, unless growing isolationism leads us to close ourselves off just as openness becomes more critical to our survival than ever.

“An ambitious reimagining of our demographic future.”

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Cathie Wood’s ARK Innovation Up 68% YTD

_{SPONSORED BY KNIGHTSCOPE}

The Name’s Bond, 10% Interest Bond

What’s better than a high-interest bond?

How about a bond that fights crime?!

The Knightscope Public Safety Infrastructure Bond pays 10% interest every year for up to 5 years. (Check out their earnings calculator to see how much you’ll earn.)

While you're earning interest, Knightscope will use the funds to help make the country safer. The company’s Autonomous Security Robots (ASRs) are already helping law enforcement fight crime. Your investment will help bring even more of their Autonomous Security Robots where they’re needed most.

But you’ll need to move quickly: Only $10M in bonds are available.

Fight crime with your portfolio. Buy Knightscope bonds and start earning interest today.*

_{DAILY ACUMEN}

Red Car Theory

The Red Car Theory suggests that once you notice a red car, you start seeing them everywhere.

Similarly, in life, what we focus on tends to dominate our perception.

If we fixate on problems, they magnify; if we concentrate on opportunities, they flourish.

This cognitive phenomenon reminds us to be intentional about our mental focal point, as our attention shapes our reality.

So, choose your "red cars" wisely—whether they're challenges or possibilities—because what captures your focus determines the landscape of your experience.

_{ENLIGHTENMENT}

Short Squeez Picks

• A Harvard researcher’s study that boosts productivity by 65%

• A Wharton professor on the perfect time to start new habits

• A 9-step sleep routine for feeling less tired

• 20 skills that separate great managers from good ones

• How leaders fake psychological safety

• Jeff Bezos: Amazon and Blue Origin on Lex Fridman Podcast

_{MEME-A-PALOOZA}

Memes of the Day