Outlook For Investment Banking in 2013October 23, 2012
Headline: Outlook for Investment Banking in 2013
Publication: Thomson Reuters
Summary: The fourth Outlook for Investment Banking Services, an annual survey of corporate decision-makers from Thomson Reuters and Freeman Consulting Services, revealed that a turnaround in M&A was still some way away yet. Leading thought leaders and senior executives from over 140 firms, globally, gave their views on the outlook for investment banking services in 2013. Respondents ranged from small and regional businesses to US$200billion+ conglomerates.
The uncertainty of the market in relation to deal-making activity is reflected in this year’s Thomson Reuters/Freeman Consulting’s global survey of corporate companies. Their exuberance in mid-2011, as reported last year, has been replaced with tempered optimism along with a gloomy outlook for the year ahead.
According to the report, outlook for corporate growth in 2013 is comparatively weaker compared to last year’s broadly positive forecasts. Hiring and investments, especially in Europe, are more on the depressing side. It is also forecasted that mergers and acquisitions will be increasingly driven by depressed valuations and many high-quality assets will be available for purchase. Corporates are more likely to use M&A to realign businesses to core markets, than to expand their geographical presence or transform their business.
Equity deal volumes are expected to remain near 10-year lows, despite positive forecasts from America. EMEA and APAC see M&A as better alternative in 2013. Borrowing is set to rebound in 2013 as rates remain attractive. Syndicated loans will see more growth than other financing products.
An unresolved Eurozone crisis and the pending US presidential elections make predictions for 2013 activity difficult.
To access the regional and sector breakdowns for responses on a range of investment banking questions, read the entire report. http://share.thomsonreuters.com/PR/IB/2013_Outlook_for_IB_Services_FINAL.pdf