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Markus' Academy

Finance from the Front Lines | Markus Academy | Ep. 67

July 20 · 1 hr 8 min · Episode 67 · 65.7 MB
0:00-1:08:23

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Follow the link for the full summary: https://markusacademy.substack.com/p/finance-from-the-front-lines 

Explore the webinar series: https://markusacademy.substack.com/archive

On May 21, 2021, Liz Myers joined Markus' Academy for a conversation on current trends in the world of finance — the challenges and opportunities corporations and investors are focused on as we emerge from the COVID era.

Myers is the Global Chairman of Investment Banking, Equity Capital Markets at J.P. Morgan. She has been named one of the Top 25 Most Powerful Women in Finance by American Banker magazine and one of Barron's 100 Most Influential Women in U.S. Finance.

● Starting a few weeks prior to the talk, markets began to see a rotation from growth into value, driven in part by recent stimulus packages pushing up the inflation outlook and interest rates. Possible headwinds include rising rates and inflation, fears of increased taxes, and supply chain disruptions, while "meme investing" may moderate as people return to work.

● The IPO market boomed in 2020 and continued to increase through May 2021. Direct listings offer an alternative for established companies, eliminating traditional investment bank-led order bookbuilding and roadshows, potentially reducing the aftermarket pop and the sense of money left on the table.

● SPACs — publicly listed vehicles with 24 months to execute a merger with a private company — grew significantly during the pandemic, driven by the low interest rate environment and major private equity and venture capital firms entering the space as serial sponsors. SEC regulation should focus on disclosure similar to that required in a traditional IPO.

● ESG-friendly bond issuances tend to price at tighter spreads, and demand for green and social bonds currently far outstrips supply. Virtual roadshows during the pandemic also proved to be a silver lining, providing equal and simultaneous access to investors and broader mentorship opportunities for those early in their careers.