Rights issues run aground as vol crushes ECM

Sam Kerr

March 19, 2020 05:15 pm

(200319) -- NEW YORK, March 19, 2020 (Xinhua) -- Traders work on the floor of the New York Stock Exchange in New York, the United States, March 18, 2020. U.S. equities ended Wednesday's volatile session sharply lower as panic selling continued on Wall Street amid coronavirus fears. The Dow Jones Industrial Average decreased 1,338.46 points, or 6.30 percent, to 19,898.92, marking its first close below 20,000 since February 2017. The 30-stock index cratered more than 2,300 points at session lows. (Photo by Michael Nagle/Xinhua) | unreguser/Xinhua News Agency/PA Images

Equity bankers are working with corporates on potential rights issues to shore-up balance sheets given the huge economic disruption caused by the coronavirus in Europe. But with volatility sky-high, even optimistic bankers are wary of bringing deals to market, while other ECM deals like block trades, convertibles and IPOs are no-go areas for the foreseeable future.

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Topics

Coronavirus Equity ABBs-Block Trades Follow-ons and Rights issues

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Sam Kerr