U.S. President Joe Biden’s first 100 days in office saw records in both M&A and capital markets, with the S&P 500 recording a stronger performance than any other president in recent history. We dive into the data for his first 100 days, alongside a historical look at previous presidential administrations.
2020 was a year like no other with the start of the pandemic influencing deal-making and capital markets throughout. It was also the year of another U.S. election during unprecedented times and resulting in the selection of new U.S. President Joe Biden.
With Biden’s inauguration back in January, the 100-day mark has passed with the president promising to focus on a series of issues facing the country, from immigration and the economy to vaccinations, infrastructure and climate change. Markets have rallied with corporate, consumer and investor confidence rising largely due to the vaccine rollout, and equity markets across major U.S. indices reaching record highs.
To help better contextualize and analyse the Biden administration’s first 100 days, we charted U.S. activity across M&A and capital markets alongside a historical look at the first 100 days of the six previous presidential administrations.
Record levels in M&A led by the U.S.
While some may have thought M&A would have been jeopardized significantly with a change in the administration, M&A experienced record levels globally, largely driven by the U.S. Comparing the first 100 days since the inauguration of the last six presidents, 2021 witnessed the highest level of M&A compared to any other period, with US$816.5 billion in deal value.
Inbound M&A reached its highest level for the first 100 days of a U.S. President with US$191 billion in M&A transactions.
Since Biden’s inauguration, 31% of U.S. M&A has come from technology-related deals with a combined deal value of US$250.9 billion followed by Industrials, accounting for 19% of total U.S. M&A in the first 100 days.
Low interest rates fuel record equity and debt issuance
Capital markets witnessed record levels of equity and debt issuance pouring into world markets as companies rushed to raise capital and take advantage of record-low interest rates. U.S. equity and equity-related proceeds during Biden’s first 100 days was the highest 100-day period on record with US$136.8 billion in equity issuance.
This is an except of the original blog article published on Refinitiv Perspectives. Continue reading the rest of the article here.
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