Hedge funds are faring well after years of lackluster results, but the returns have not been uniformly strong. … READ MORE >
Financial services
CHART OF THE DAY: Plunging private equity deal flow in Canada
The economic distress from the coronavirus pandemic is hitting the Canadian private equity market hard. The number of deals reached in Canada this year through Oct. 6 fell to 194, which at that pace would represent a 60% decline from 2019. … READ MORE >
SBA announces simplified PPP loan forgiveness
Some businesses that accepted financing under the Paycheck Protection Program now have a streamlined path to receiving the promised forgiveness of those loans, under new guidelines released late Thursday. … READ MORE >
CHART OF THE DAY: Business development companies show continued risk
Business development companies are still lagging the market in a sign of persisting concern over the performance of loans to small and midsize businesses. … READ MORE >
CHART OF THE DAY: A record year for SPACs
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 >
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 >