Join host Amaury Guzman and guest Kevin Foley, Global Head of Capital Markets, as they discuss economic dynamics, IPO activity, M&A green shoots, private credit trends, and how CEOs are navigating economic uncertainties. Explore 2024 capital markets, interest rates, direct lending trends, CEO insights, global market trends, and more.
Global capital markets are experiencing a 'Goldilocks' period with solid growth and easing inflation.
IPO activity is increasing, focusing on profitable businesses with high concentration in key stocks.
Deep dives
Current State of Global Capital Markets
Global capital markets are in a 'Goldilocks' period with solid economic growth, healthy corporate earnings, and easing inflationary pressures. Despite expectations, the Fed has remained cautious about rate cuts, with the market now pricing in a 75% chance of two cuts later in the year. The economic outlook has been better than anticipated, leading to a shift in rate expectations. Volatility in the markets has been lower than expected amidst changing rate forecasts.
IPO Activity and Equities Performance
IPO activity has increased, although still lower than pre-COVID levels, with deals focusing on profitable or near-profitable businesses. In the equity market, concentration has risen, with a few key stocks driving performance. The IPO market mirrors this narrow trend, favoring businesses with stable performance amidst economic uncertainties. While the first half of the year showed strength, caution remains for the future as election events may impact market dynamics.
Outlook on M&A and Debt Markets
Debt markets have seen strong performance, especially in high-yield sectors, driven by attractive spreads. Most of the activity has been refinancing, pointing towards robust demand but limited new investment. M&A activity has shown signs of improvement, although a gap remains between buyers and sellers. The year 2025 holds promise for increased activity, with pent-up demand expected to drive market transactions.
Join host Amaury Guzman and Kevin Foley, Global Head of Capital Markets, as they dive into the current state of global capital markets. Explore economic dynamics, IPO activity, M&A green shoots and private credit trends. Gain insights into how CEOs are navigating economic uncertainties and what lies ahead for the second half of 2024 and beyond.
This episode was recorded on June 28, 2024.
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