Friday, June 30, 2006

Investment Banks Jockey for Position

The hot mergers-and-acquisitions market surged deep into record territory during the first half of the year, according to new data released on June 30 by market researcher Dealogic. But the investment banking business isn't what it used to be: The numbers show that investment banking revenue has dropped 29% from the record level of 2000, the peak of the last boom.
RECORD DEAL VOLUME. Such deals helped hike global deal volume for the first half of the year to $1.93 trillion, up from $1.4 trillion during the first half of 2005, according to analyst Natalie Cogan of market researcher Dealogic. "Global announced M&A has reached the highest half-year volume on record," she said. At the current pace, the volume of M&A deals will approach the $4 trillion mark. That would shatter the annual record of $3.32 trillion set in 2000, the peak of the late '90s stock and tech bubble.

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