M&A surge cannot slake debt markets’ thirst for deals

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By Jon Hay, Mike Turner
08 Apr 2021

Debt markets are awaiting a wave of mergers and acquisition financings in the second quarter and later this year, as the boom in deals sparked by confidence that the economy is recovering from the coronavirus gathers steam. But the eagerness to lend will create tension between loan and bond markets, and deals are likely to get more challenging later in the year, write Mike Turner and Jon Hay.

The deal rain cannot come soon enough for banks and bond investors thirsty for paper offering some fees and yield, at a time when central banks have pumped so much liquidity into markets that even Ghana can issue four year debt with a zero coupon. High volumes ...

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