Special purpose acquisition companies (SPACs) are continuing their blockbuster year, with dollars raised in 2020 already beating the total from the previous 10 years combined, according to data from Bloomberg. … READ MORE >
Financial services
CHART OF THE DAY: What story is the high-yield bond market telling us?
Changes in stock and high-yield bond valuation levels have diverged since the start of September, a shift after largely tracking each other since the beginning of 2020. … READ MORE >
SEC adopts amendments bringing clarity to accredited investors and family offices
The SEC has adopted all the amendments of the accredited investor definition. Family offices and family office clients that meet this standard will be able to invest in the private markets, including private equity, venture capital and hedge funds. … READ MORE >
Hedge funds will be tested as U.S. fundamentals remain frail
Middle market hedge fund managers are coping with a contradiction—as the world unravels due to Covid-19, the S&P is nearing an all-time high. While the markets respond favorably to progress on a vaccine, money managers are looking to a future with a high degree of uncertainty around a possible U.S. recovery amid weak fundamentals. … READ MORE >
Fintechs helped with the Paycheck Protection Program. Why not the Main Street Lending Program?
Fintechs played an important role in helping the Paycheck Protection Program gain broad acceptance. Now, fintechs could do the same in the Main Street Lending Program — if, that is, the government makes some prudent changes to the program. … READ MORE >
COVID-19 stifles middle market private equity dealmaking
With reduced dealmaking, private equity firms are left to prioritize their existing portfolio investments and must measure the continuing uncertainty created by the pandemic. … READ MORE >
RSM’s exclusive MMBI survey reveals how the Main Street Lending Program can be improved
RSM’s survey for its proprietary Middle Market Business Index for July suggested that the Main Street Lending Program could gain broader participation with targeted changes and greater clarity about the program. … READ MORE >
Without adjustments, Main Street Lending Program is unlikely to be mainstream
Unlike the strong demand for the Paycheck Protection Program, which saw $350 billion in aid snatched up in the 13 days following its debut, interest in the Main Street Lending Program has been more muted; less than $100 million in aid was requested in the program’s first month, according to data from the Federal Reserve. … READ MORE >
Is cash no longer king?
Cashless payments are rapidly becoming the norm as the spread of the coronavirus has forced consumers and businesses to change their ways. … READ MORE >
Businesses already strained by COVID-19 should prepare for hurricane season
Forecasters predict a 70% chance that this hurricane season will be worse than normal. For businesses already stretched thin by the coronavirus pandemic, the grim forecast comes at a perilous time. Sectors such as insurance, real estate, hospitality and health care are particularly vulnerable. … READ MORE >