Announced M&A volumes of $54mn were +40% from last week. So far, quarter to date, M&A volumes are averaging +10% above last quarters levels.
Sandler O’Neill’s Weekly M&A Trends:
Equity markets recovered after three weeks of declines
- The S&P 500 increased by 1.7% and the Russell 2000 growth index increased by 3.0% in the week. Quarter to date the S&P 500 has declined by 6.4% and the Russell 2000 growth index has declined by 8.1%.
- Average daily U.S. equity trading volumes declined by 13.3% in the week. Quarter to date volumes are now flat with the 1Q12 average. Average daily U.S. volumes reflect the total number of shares traded on Tape A, Tape B, and Tape C in millions.
- Equity mutual funds experienced net outflows of $3.6 billion in the week according to ICI data (on a one week lag). Flows have been negative in eleven out of the previous twelve weeks.
- Volatility, measured by the average CBOE VIX, declined by 4.8% to 22.0, and the DB currency VIX declined by 0.9% to 11.7.
Both announced and completed M&A were the highlight in a decent week for investment banking activity
- Equity underwriting volumes of $10.1 billion declined by 50% from the prior week’s level (which was boosted by Facebook’s $16 billion IPO). Quarter to date, equity underwriting volumes are averaging 17% below the 1Q12 weekly average. Note: prior weeks are subject to revisions.
- Corporate debt underwriting volumes of $56 billion rose by 40% from the prior week. Quarter to date, corporate debt underwriting volumes are averaging 39% below the strong 1Q12 weekly average.
- Announced M&A volumes of $54.3 billion nearly doubled from the prior week. Quarter to date, announced M&A volumes are averaging 10% above the 1Q12 weekly average.
- Completed M&A volumes of $63.5 billion nearly tripled from the prior week’s relatively depressed level. Quarter to date, completed M&A volumes are averaging 23% above the 1Q12 weekly average.