Pace Of Merger & Acquisition Activity To Slow In 2016: BAML

As equity investors are beginning to push back against further re-leveraging activity, the pace of merger and acquisition activity will slow next year, believe analysts at Bank of America Merrill Lynch. Hans Mikkelsen and team at BAML said in their Dec. 23 research note titled “2016 HG supply outlook” that they anticipate less opportunistic issuance in 2016 and a decline in supply related to funding share buybacks.

Merger & acquisition activity – New issue supply volumes to remain unchanged in 2016

Mikkelsen and colleagues expect new issue supply volumes to remain roughly unchanged in 2016 relative to the record $1.2 trillion anticipated this year. Though the analysts anticipate a decline in M&A volumes, they expect M&A financing activity to increase in 2016. The...