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Banks Report Surge in IPO, Convertible Issuance Toward Quarter-End
30 Jul
Summary
- Slowdown in April and May, but IPO, convertibles, and follow-ons accelerated in late Q2
- Companies able to freely access IPO market, but private equity-backed assets slower to come to market
- Executives from Morgan Stanley and Goldman Sachs echo views of peers at larger institutions
In the most recent quarter, the financial markets experienced a mixed performance, according to executives from major banks. While there was a slowdown in activity during April and much of May, the executives report that the issuance of IPOs, convertibles, and follow-on offerings all accelerated toward the end of the quarter.
Morgan Stanley's Chief Financial Officer, Sharon Yeshaya, stated that companies were able to freely access the IPO market, despite the earlier slowdown. However, Goldman Sachs Group Inc. executives noted that private equity-backed assets were slower to come to market compared to other offerings.
The views expressed by the bank executives echo the sentiments of their peers at larger financial institutions. This suggests that the recent trends in the capital markets were widespread, with both smaller and larger players experiencing similar dynamics.
