Goldman Sachs reported a 45% surge in profits, surpassing estimates, with growth attributed to M&A advisory and equity and debt underwriting, signaling potential dealmaking resurgence.
CEO David Solomon highlighted that lower interest rates and a strong economy are contributing to an environment ripe for increased corporate dealmaking activity, indicating significant pent-up demand.
While acknowledging that the M&A market has not yet reached historical averages, Solomon expressed optimism for a potential 'M&A supercycle' if pent-up demand is quickly released.
The call saw discussions that expanded beyond M&A, suggesting lower rates could invigorate corporate lending, IPOs, and stock issuance, marking a recovery in investment banking.
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