Insider Finance - Business - Wall Street: M&A, lending plummet

The latest in finance.
View in browser


Hi. I'm Aaron Weinman. Today will be my final dispatch as the author of 10 Things on Wall Street. I'm absolutely gutted to be leaving, but after nearly 11 years abroad, I've decided to head back to Australia. But you're in good hands — my Insider colleagues will be leading the newsletter from here.

Alas, the show must go on. With a new quarter about to start, the numbers from the third quarter looked pretty bleak.

Global M&A deal values reached about $2.7 trillion for the first nine months of 2022, down 34% for the same period last year, according to data from Refinitiv.

Cross-border M&A was down nearly 40% for the first three quarters, while private-equity-backed buyouts dipped roughly 26%, the data showed.

The slump in deals has led banks to trim workforces and reduce their expenses.

Let's do this one last time.

If this was forwarded to you, sign up here. Download Insider's app here.

Wall Street street sign

1. Deal values, and volumes, slumped for the first nine months of the year. Persistently high inflation, economic uncertainty, and increased borrowing costs have made it tougher for companies to stomach debt, and many have held off from moving ahead with mergers and acquisitions.

Globally, the number of M&A deals fell to 39,250 from January through September, down 18% from 48,045 in 2021, Refinitiv data showed.

Cross-border deals reached 11,753 for the first nine months of 2022, down 12% from last year's 13,385 transactions. And in private-equity land, sponsor-backed buyouts fell 27% to 8,348 from 11,503, the data showed.

Debt capital markets also turned bearish last quarter, and lending took a hit, according to Maria Dikeos, the head of global loan contributions for Refinitiv.

US syndicated loan volumes hit $1.8 trillion for the first three quarters, down 15% year-over-year.

Companies are tightening their purse strings in a bid to ride out the market volatility. Industries from big tech to Wall Street have conducted rounds of job cuts to trim their expenses, and shore up their balance sheets ahead of potentially more choppy economic conditions.

To be sure, global M&A is still ahead of 2020's first three quarters — roughly $2.17 trillion worth of deals were completed during that time — and only slightly behind the $2.8 trillion in deals that were completed during the first nine months of 2019.

While the slowdown is notable, it's important to remember that 2021 was a record year for M&A, capital-markets dealmaking, and private equity, which is still sitting on trillions of dollars of unused capital.

In other news:

Ulrich Körner

2. Credit Suisse sought to calm worries about its financial strength. CEO Ulrich Körner said Friday that the bank has a "strong capital base and liquidity position," Bloomberg reported, but that statement failed to quell speculation about the health of the bank. Hedge fund manager Boaz Weinstein tweeted Saturday that the chatter on Twitter "feels like a concerted effort at scaremongering." The Financial Times Alphaville tried to filter out the noise surrounding the Swiss bank. Amid the concerns, Credit Suisse shares fell nearly 8% in early trading Monday

3. Hedge fund stars, other former colleagues, and relatives of  Julian Robertson gathered in a Manhattan chuch Friday morning to remember the billionaire Tiger Management founder who died in August at age 90.  Insider attended the memorial service.

4. Elon Musk vs. Twitter: Text logs show Reid Hoffman, Jack Dorsey, and Joe Rogan texting the billionaire about Twitter. Here are all the juiciest private texts between Musk and his wealthy friends discussing plans for the social-media platform. The bevy of messages also make clear that, at least at one point, Musk was serious about buying Twitter.

5. Hedge funds are on the hunt for talent in Florida. Two recruiters have described the rush, the roles they're trying to fill, and the challenges that even the big firms face.

6. JPMorgan plans to hire about 2,000 engineers worldwide through the end of this year, Reuters reported. The bank added more than 5,000 software developers and data scientists last year and aims to attract more at a time when tech giants have slowed hiring.

7. UBS's U-turn on acquiring WealthFront followed pressure from shareholders and US regulators, reported SonntagsZeitung of Switzerland, citing unidentified bank sources, according to Reuters.  The Swiss bank and US robo-advisor announced in September that they had agreed to terminate the $1.4 billion deal. 

8. A member of the Safra banking family is trying to stop private lenders from taking over Spring Mountain Vineyard, a large Napa Valley vintner of award-winning cabernet sauvignon wines.

9. Biotech firm Prime Medicine is gearing up for a $200 million initial public offering. We dug through the company's 282-page filing to find five key points about Prime's plan to commercialize gene editing.

10. Blackstone used to target places where people worked and shopped before buying people's homes. Here is how one country took on the world's biggest commercial landlord, in this deep dive from the Guardian.

Done deals:

  • Investment manager Clear Sky Advisors has hired John Holl as president of North American carbon and president of environmental trading. He joined from ACT Commodities. Clear Sky focuses on sustainable investment strategies.
  • Private-credit firm Brightwood Capital Advisors has appointed Kristan O'Connor as a managing director in the firm's portfolio management and risk group. Before joining Brightwood, O'Connor was a senior vice president and credit risk executive at Bank Leumi.
  • Shane Akeroyd has joined Digital Asset's executive team as a president. He will focus on developing customer relationships and new business. He joined from IHS Markit.

Curated by Aaron Weinman in New York. Tips? Email or tweet @aaronw11. Edited by Hallam Bullock (tweet @hallam_bullock) in London.

Older messages

Meet the 5 mentors participating in Insider's first mentorship program for entrepreneurs

Saturday, October 1, 2022

Insider created a mentorship program, in partnership with Indeed, to help five entrepreneurs navigate the challenging labor market. View in browser Business Insider Business Insider Business Insider

Amazon rolls out broad-based pay raises for warehouse workers across its fulfillment network

Friday, September 30, 2022

Amazon employees have been agitating for higher pay for years, putting the company under pressure to respond. View in browser Business Insider Business Insider Business Insider Subscribe Business

Wall Street: BlackRock walks the ESG tightrope

Friday, September 30, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. Aaron Weinman here. BlackRock's bullish stance on all things environmental, social, and governance has

Over 275 of the most promising startups of 2022 in edtech, fintech, crypto, proptech and more, according to VCs

Thursday, September 29, 2022

Despite the rough economic environment for tech startups, some are thriving. We asked VCs to name the most promising ones across industries. View in browser Business Insider Business Insider Business

Wall Street: Meet the rising stars of finance

Thursday, September 29, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. I'm Aaron Weinman. Today I want to highlight Wall Street's brightest young talents who are

The answer to the jobs riddle

Monday, November 28, 2022

Bloomberg Evening Briefing View in browser Bloomberg The global economy looks shaky and some of the world's biggest names are firing thousands of employees. For those workers, there's little

🤫 Psst, we might be past peak inflation

Monday, November 28, 2022

Chinese ecommerce platform Pinduoduo throve last quarter | Prices might finally be about to ease up | Finimize Hi Reader, here's what you need to know for November 29th in 3:11 minutes. ❄️ This

A controversial tactic to get a raise

Monday, November 28, 2022

Plus: Exclusive Hollywood club, and China's protests. View in browser Subscribe Only fascinating stories Nicholas Carlson, November 28, 2022 Hello, Insiders. I've been glued to footage of

Why Finance is Hard to Decentralize

Monday, November 28, 2022

Plus! Why They Don't Drill; Shorting; Crypto Liquidity; Food Convergence; Crypto Transparency; Diff Jobs ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Wall Street: Alternatives for all

Monday, November 28, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Welcome back! Dan DeFrancesco here in New York. Today we've got stories on why Gen Z might be in trouble

🇨🇳 China stumbled on the starting blocks

Sunday, November 27, 2022

Daily Covid cases hit an all-time-high in China | Holiday sales got the US het up but left Europe cold | TOGETHER WITH Hi Reader, here's what you need to know for November 28th in 3:03 minutes. ⛷

Amazon guts Alexa — Disney drama — Swiftie lawyers

Sunday, November 27, 2022

A selection of our best stories from the past week, as chosen by a top editor. Subscribe to Insider View in browser INSIDER WEEKLY Hi, I'm Matt Turner, the editor in chief of business at Insider.

Longreads + Open Thread

Saturday, November 26, 2022

Mergers; SAFEs; Twitter; Hacks; Cells; MF Global; Diff Jobs ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Oil’s weird decline

Saturday, November 26, 2022

Bloomberg Weekend Reading View in browser Bloomberg For investors keen to see the US Federal Reserve slow the size of its interest rate hikes, this week offered some hope. The bad news is that Fed

The real ‘Fed pivot’

Friday, November 25, 2022

Bloomberg Evening Briefing View in browser Bloomberg Beneath the surface of a Wall Street still crowded with bears, some money managers are reacting to the latest signs that a “Fed pivot” has finally