Sellers rush to blocks market but investors worry about sky high valuations

By Sam Kerr
14 May 2020

$14.6bn of secondary block paper priced in Europe and the US this week, according to Cortex data, as sellers offloaded large stakes in listed companies. They were taking advantage of a rally since the bottom of the pandemic sell-off in March. However, falling earnings estimates mean some fear that sellers may be divesting stock because they believe the market is overvalued.

A huge block sale in BlackRock on Monday, sold by US Bank PNC Financial Services Group, was the seller’s full stake in the asset management behemoth. Other sellers have also hit the market this week, albeit in smaller trades.

In EMEA alone this week there was around $1.7bn ...

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