Evercore's Schlosstein Sees Uncertainty in Deal Making

The video discusses the impact of uncertainty on deal making, emphasizing the role of the Federal Reserve and midterm elections. It explores how gridlock can provide a form of certainty and the challenges posed by higher interest rates. The discussion extends to global market stress, particularly in emerging markets with dollar-denominated debt, and the role of leverage in financial crises. The video concludes with an examination of antitrust enforcement and its potential impact on deals, highlighting the need for legislative changes to effect significant policy shifts.

What is considered the main adversary of deal making according to the discussion?

• Uncertainty

• Inflation

• Government regulations

• High interest rates

How does gridlock in government potentially affect the markets?

• It leads to increased inflation

• It provides a form of certainty

• It results in higher interest rates

• It causes market crashes

What challenge does higher interest rates pose to deal making?

• Higher taxes

• Lower stock prices

• Difficulty in obtaining financing

• Increased inflation

What role has private credit played since 2008?

• It has decreased significantly

• It has remained unchanged

• It has made significant inroads

• It has been eliminated

What is often the root cause of financial crises?

• Low interest rates

• Leverage

• High taxes

• Government spending

Which markets are particularly vulnerable during periods of higher rates and weaker economic activity?

• Developed markets

• Emerging markets

• European markets

• Domestic markets

What is necessary for a significant change in antitrust policy?

• New legislation

• A change in government

• Public opinion

• Economic growth