12 July 2021

Record Deluge of Deals for M&A

From Bloomberg: "It’s trading places all over again on Wall Street -- this time, on a multi-billion dollar scale.

Trading desks that last year raked in their biggest haul in almost a decade are expected to report a sharp drop in second-quarter revenue this week as life returns to normal and pandemic-induced market volatility fades. Meanwhile, on the ascent: investment bankers who are scrambling to keep up with a record deluge of deals, fueled by rebounding corporate confidence and free-spending private equity firms.

Wall Street Dealmakers Step Into Limelight With Windfall Nearing

  • Deal making is on the ascent as trading revenue faces drop
  • Goldman Sachs passed $1 trillion mark earlier than ever before

Never before has Goldman Sachs Group Inc., the leader on league tables tracking mergers and acquisitions, passed the $1 trillion mark for transactions so early in the year. JPMorgan Chase & Co. and Morgan Stanley, the No. 2 and 3 banks by market share respectively, have also seen large jumps in business.

All three lenders have worked on at least 100 deals more in the first half of the year, compared with the same period through 2019 before the pandemic began, according to data compiled by Bloomberg.

“We’ve done 200-plus $500 million deals in the first half, and the five-year average is in the 80 to 100 range,” Stephan Feldgoise, Goldman Sachs global co-head of mergers and acquisitions, said in an interview, citing data using all publicly available sources.

Banking on Deals

Investment bank deals surged in 2021

Source: Bloomberg

Now, the question is whether the tidal wave of takeovers, stock offerings and debt deals can make up for what’s expected to be a 28% drop in combined trading revenue at the five biggest U.S. banks -- a group that also includes Bank of America Corp. and Citigroup Inc., where low interest rates are pressuring lending margins. . ."

READ MORE > https://www.bloomberg.com/news/articles/2021-07-12/wall-street-dealmakers-step-into-limelight-with-windfall-nearing?

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