WSJ: Deal-making activity for big investment banks might be in for a long lull
Link: https://www.wsj.com/finance/banking/wall-streets-…
... Judging by past cycles, it could still take years for things to even come close to ... 2021 records. For example, global M&A volume in 2007 was $4.6 trillion—it took until 2014 to get to just three-quarters of that level again, and until 2021 to surpass it, according to Dealogic data. And that was during an era when interest rates were at superlow levels.
Of course, volumes don’t need to be setting records to produce solid quarters. But a lot is riding on megabanks’ highly profitable Wall Street arms to help sustain returns as deposit costs rise, credit losses emerge and equity capital requirements go up. ...
