What to Expect in Investment-Grade Activity This Year

The video discusses the current state of the market, highlighting the strong performance of investment grade sectors despite geopolitical uncertainties and election cycles. It explores the trend of US companies issuing in European markets to capitalize on arbitrage opportunities, driven by yield disparities and ECB policies. The impact of Brexit is considered minimal compared to central bank actions. The video also examines the market pipeline, noting a decrease in M&A volumes and a shift towards more measured financing transactions.

What were the two main catalysts for the acceleration in the investment grade market in the first quarter?

• Geopolitical overhang and election cycle

• Brexit and ECB policies

• U.S. companies issuing in Europe

• Stock-funded transactions

Why are U.S. companies increasingly issuing in European markets?

• To avoid U.S. regulations

• To benefit from Brexit uncertainties

• To expand their European operations

• To take advantage of yield disparities

What is the primary factor influencing the arbitrage opportunity for U.S. companies in Europe?

• Market confidence

• Brexit resolution

• Election outcomes

• Central bank maneuvering

What is the expected trend for M&A volumes in 2020?

• Significant increase

• Stagnation

• Rapid growth

• Continued decline

How are companies approaching financing in light of geopolitical uncertainties?

• Increasing debt-financed transactions

• Focusing on stock-funded transactions

• Expanding into new markets

• Reducing investment activities