Short IB Stocks?
They aren't bubbles as such but I am definitely bearish on them in the future. For now, I don't think their stocks are overvalued or anything along those lines. Just something to keep an eye on.
Exchanges at Goldman Sachs: M&A Outlook: How Companies Are Positioning For Growth
“New collateralized loan obligations (CLO) supply is set to remain elevated due to stable spreads alongside M&A and leveraged buyout activity. We favor AAA-rated CLOs as they continue to offer attractive carry versus other segments of the fixed income spread sector universe.” (Also GS)
JPMorgan boosted by M&A boom but bank warns costs will keep rising | Financial Times (ft.com)
From Dying of Money:
In the peak year of 1968, conglomerate mergers sucked up enterprises having $11 billion of assets, ten times the conglomerate mergers of 1960. New investment in stock market issues went into "hot stocks," which were often marginal activities that had little or no productive justification for being. Productive industries changed their names pell-mell to names which described nothing, perhaps to conceal the embarrassing fact that they produced anything.
Concentration of wealth and business was still another characteristic trend. The merger, the tender offer, the takeover bid, and the proxy fight were in vogue. Bank mergers were all the rage, while at the same time new and untried banks sprouted. Great ramshackle conglomerates of all manner of unconnected businesses were collected together by merger and acquisition. Armies of lawyers, brokers, accountants, businessmen, and technicians who spent their time pasting together these paper empires bolstered the lists of the more or less employed. The most fabulous of the conglomerates was the empire of Hugo Stinnes, which comprised hundreds of companies at its peak in coal, iron, steel, shipping, transport, paper, chemicals, newspapers, oil, films, banks, hotels, and more. Stinnes was Mr. Everything who had also begun to colonize abroad and is supposed to have contemplated organizing all German industry into a single super-conglomerate |
