'Many deals over $10 billion amid conflicts... this is astonishing': JPMorgan chief Anu Aiyengar
Deal-making momentum is driven by available financing and open markets, while M&A activity focuses on large strategic deals. Private credit has seen a correction, which is seen as healthy for markets. High US yields influence sponsor math, but monetization and exits remain key constraints. Hyperscalers' AI financings involve third-party capital, assessing cash flows and guarantees. Companies are…
JPMorgan's Anu Aiyengar discusses the recent surge in deal-making activity, particularly in deals exceeding $10 billion. Despite geopolitical tensions and economic uncertainties, strategic M&A activity remains robust. She attributes this to the availability of capital and the necessity to navigate challenges. In private credit, Aiyengar notes a correction following heavy activity and new entrants, but remains optimistic about the asset class.
She also addresses concerns about AI's impact on company valuations, stating that investors are more lenient with AI spending compared to other investments, expecting long-term returns.
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