Ten Striking Facts to guide your Corporate Finance decisions in 2018
2018 Corporate Finance Advisory Brief
Surging Global Growth
100% of countries tracked by the OECD are currently experiencing economic growth for the first time in ten years
Low credit risk
The cost of high yield debt relative to investment grade debt is lower today than more than 85% of the time in the last fifteen years
In 2017, the Dow tied the quickest and third quickest move up to a new 1000 point milestone (24 days and 42 days, respectively)
decline in correlation
Equity correlation falls
A measure of how much S&P 500 constituent stock prices move in tandem fell more than 20% from previous years
The U.S. Treasury yield curve is the flattest in 10 years, with the 2yr-10yr spread at just over 50 bps
Robust private capital markets
Over the last three years, capital invested in nonpublic U.S. firms exceeded capital raised via IPOs by almost 150%
Preferred equity issuance
Non-financial corporate preferred equity issuance increased almost 6x to $7.4bn in 2017 vs. 2016
Companies have increasingly been acquiring firms with higher relative growth rates, with larger corporates buying smaller companies whose long-term growth rates are more than 5% higher than their own (more than 300 bps higher than in recent years)
1 in 5
SPACS version 2.0
Special Purpose Acquisition Companies (SPACs) represented one-in-five dollars raised in the U.S. IPO market in 2017 vs. one-in-fifty in 2013
Only six physical currencies have more value in circulation than the current amount of cryptocurrency outstanding ($572bn)
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