Credit Suisse strategists say abnormally low levels of M&A activity and low levels of of corporate debt have created a perfect M&A storm

Credit Suisse strategists say abnormally low levels of M&A activity and low levels of of corporate debt have created a perfect M&A storm. "The collective balance sheet is certainly ready to be put to use: 73 percent of US companies and 56 percent of European ones have an astonishingly low level of debt on their balance sheets compared to their total market capitalization. Even if companies in both regions borrowed only enough to return to historic average leverage levels, they would have a remarkable 2.3 trillion US dollars of "firepower" available for corporate M&A activity. Private equity companies have another 1.1 trillion US dollars on hand. Finally, surveys show that corporate confidence is improving in both the US and Europe, another factor that tends to signal an upswing in M&A." Read More (VIEW LINK)


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