BCG on Financial Institutions’ Post

- Anticipation of peak interest rates driving investor demand and issuer resilience. - Fee pools in DCM, ECM, LevFin, and M&A revealing intriguing market dynamics across sector/product clusters. - A deep dive on M&A activity and archetypes of different investment banking business models - A closer look into the rise of private markets and their booming growth.

Our Q3 Investment Banking Origination & Advisory Trends report at Boston Consulting Group (BCG) for 2023 is here, and below are some key takeaways: 📈 DCM Transformation: All positive trends indicate issuer resilience to higher interest rates. Investor preference and demand is also resilient as attractive yields are on offer, particularly amongst riskier credits.  🌟ECM Shift: Signs the market for equity issuance is transitioning to a fully re-opened market. Cautious optimism is required given geo-political dynamics. 💰Leveraged Finance Dynamics: Leveraged borrowers are fleeing to more risk-accommodating private debt markets with favorable covenants and terms banks are not offering. 🤝 M&A Surge: Small-cap deals are up 20% YoY, driven by high PE dry powder and corporate cash reserves. A big thank you to Tim Jennison, Andrew Hardie, Julian Hein, Sandeep Bahra, Vedant Munshi, Raluca Gligor, and Amrit Shahani! Explore the full report for in-depth insights into these trends. 📚🔍 #InvestmentBanking #Q3Trends #DCM #ECM #LevFin #bcg #financialinstitutions

Whether public or private, credit is credit. At S&P Global Ratings’ inaugural Private Markets Conference last month, market participants convened in London to discuss how changing market conditions are shaping tomorrow's private credit market. Thought leaders from BlackRock, KKR, Hayfin Capital Management LLP, Kartesia , Santander, Cinven, Apax, HSBC Asset Management, Natixis Corporate & Investment Banking, and Barclays shared their insights on the potential growth of private markets in Europe and globally. Looking ahead, challenges for borrowers may ultimately become opportunities for lenders as the market broadens and deepens. We believe that public and private markets will align to support the growth of credit in the future, particularly playing to their strengths in size and scale. Explore our post-event coverage and related research on private credit, fund finance, investor vehicles, and project finance: https://okt.to/S29HJu

The post-bank era is coming. TPG's CEO Jon Winkelried and TPG Angelo Gordon's Head of Structured Credit & Specialty Finance T.J. Durkin recently shared their perspectives on the post-bank era in this video: https://lnkd.in/eCGegN42 Asset-based credit is taking center stage in the U.S. credit market, bringing new opportunities for diversification and yield. As traditional banks pull back, private credit firms are stepping in and using their tangible assets to innovate financing. They point out how critical the capability to evaluate, fund, and manage risk in asset-based finance is and note the specialized skills required across different asset classes within structured credit. It’s a must-watch for those interested in learning how this change impacts investment strategies. #SpotlightSeries #PrivateCredit #AssetBasedFinance #InvestmentStrategy

As we enter Q4, see an update on trends in business M&A and Capital Markets from our UBS Investment Banking Coverage team.

We’re excited to share our Investment Banking & Global Markets Update: "2023 Unveiled: Cost Excellence Rises to Strategic Prominence."   This report dives into the shifts and trends shaping the investment banking landscape. As the industry faces unparalleled challenges, from increased regulatory pressures to increasing cost bases, the analysis offers a roadmap for banking executives to navigate through these turbulent times with a focus on cost excellence, strategic investments in technology, and adapting towards capital-light business models.   Key highlights include:   ✅ The strategic shift towards cost management and productivity in response to contracting revenue pools across O&A, FICC, and Equities. ✅ The role of regulatory divergence, macroeconomic stability, and market uncertainty in driving these trends. ✅ Insights into the contraction of the overall IB&M revenue pools by 8% YoY, with a detailed breakdown of the changes in Origination & Advisory, Equities, and FICC revenues. ✅ A forward-looking perspective on M&A activity, technology's impact on cost and productivity, and strategic implications for G-SIB’s navigating the new landscape.   Thank you to our great authors: Tim Jennison, Julian Hein, Amrit Shahani, Marios Tziannaros, Steven Alexander Kok, Sandeep Bahra, Rishi Baveja, and Quirin Stockinger.   #InvestmentBanking #GlobalMarkets #CIBStrategy #financialinstitutions

BCG's Investment #Banking & Global Markets Update

📈 Equity Capital Markets (ECM) are essential in the financial landscape because they allow companies to obtain the necessary capital for their growth and expansion through financial institutions. In a context of economic recovery and optimism in the financial markets, primary ECMs emerge as key players in the revitalization of the business sector. At BBVA Corporate & Investment Banking, we understand the importance of these markets and are a benchmark in accessing and executing ECM operations. Based on data analysis, and thanks to the combination of financial product specialists and experts in specific sectors, we offer innovative solutions that enable companies to seize market opportunities. 🔗 Discover more about how #BBVACIB is transforming access to capital markets and helping companies reach their potential here: https://lnkd.in/dmETef-M #CapitalMarkets #ECM #FinancialInnovation #EquityMarket #BBVA

Fidelity Bank Emerges as Top Pick for Investors Amidst Optimistic Market Predictions In a buoyant outlook for investors, highly regarded independent investment advisory firms have identified Fidelity Bank PLC as a prime investment opportunity, touting its potential to yield significant returns. The “buy” rating bestowed upon Fidelity Bank by multiple market pundits underscores growing confidence in the bank’s performance and strategic direction. Read more👇🏼 #fidelitybank #bankingandfinance #financialinclusion Dr. Nneka Onyeali-Ikpe (OON) Mustafa Chike-Obi Dereck Okpara (KSM) MBA/CAMS/CRISC/CDPSE/ERMCP Mike Nnaji,FCA ken Opara Nnamdi Edekobi

For some more detail on exactly how this innovation resolves the identified root causes of the trade gap in Africa please see the link below: https://lnkd.in/dKgR99Us To be successful in solving a problem with the complexity and magnitude of the African trade gap, better understanding and structuring is not sufficient on its own - we need the collaboration of interested global development and investment partners. #africa #tradefinance #sme #innovation #sustainability