mercredi 15 avril 2015
Wall Street's top bankers are telling clients the Fed won't raise rates in June
Posted on 21:05 by nice news
Wall Street’s banks are telling clients that the Federal Reserve is unlikely to raise rates when its board meets in June.
We've spoken to a half dozen industry sources and all said they don't believe the Fed will raise rates until September at the soonest.
This is certain to have wide-ranging impacts: the Fed keeping rates at 0% will support M&A, and could breathe life back into an otherwise limp IPO pipeline. If the Fed decides to not increase rates in June, the market will have until September before the next prospective rate hike.
“It’s priced into the market, but not yet for M&A arbitrage funds,” said one hedge fund professional at a multi-billion dollar fund.
The source said M&A arb funds — which buy companies’ stock after a merger is announced, hoping they can cash in on shares trading beneath a deal’s premium — could be in for heady times, as debt packages are approved and regulatory hurdles are cleared, giving bigger investors a chance to cash in on deal premiums.
Read more: http://ift.tt/1ytThme
We've spoken to a half dozen industry sources and all said they don't believe the Fed will raise rates until September at the soonest.
This is certain to have wide-ranging impacts: the Fed keeping rates at 0% will support M&A, and could breathe life back into an otherwise limp IPO pipeline. If the Fed decides to not increase rates in June, the market will have until September before the next prospective rate hike.
“It’s priced into the market, but not yet for M&A arbitrage funds,” said one hedge fund professional at a multi-billion dollar fund.
The source said M&A arb funds — which buy companies’ stock after a merger is announced, hoping they can cash in on shares trading beneath a deal’s premium — could be in for heady times, as debt packages are approved and regulatory hurdles are cleared, giving bigger investors a chance to cash in on deal premiums.
Read more: http://ift.tt/1ytThme
Wall Street's top bankers are telling clients the Fed won't raise rates in June
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