Industrial Monthly Market Roundup

Real-Time Markets Perspectives
- According to the Department of Labor, the Consumer Price Index (CPI) rose 0.6% in March 2021 from the prior month and 2.6% from the prior year, versus the Dow Jones estimates of 0.5% and 2.5%, respectively
- Gasoline prices were the biggest contributor to the monthly gain, surging 9.1% in March 2021 and were responsible for approximately half of the overall CPI increase
- Gasoline prices are currently up 22.5% from a year ago, part of a 13.2% increase in energy prices
- Gasoline prices were the biggest contributor to the monthly gain, surging 9.1% in March 2021 and were responsible for approximately half of the overall CPI increase
- The deficit for the first six months of the 2021 fiscal year ballooned to a record $1.7 trillion, compared to a $743 billion deficit for the comparable period last year
- The U.S. government posted a March budget deficit of $660 billion, a record high for the month, as direct payments to Americans under the latest stimulus package were distributed
- The March 2021 deficit was the third highest U.S. monthly deficit on record, surpassed by $864 billion in June 2020 and $738 billion in April 2020
M&A Markets
- Carrying forward the momentum of 4Q20, M&A activity turned in a strong first quarter performance with North America, dominated by the U.S., netting 54.4% of global deal value (its highest market share in 14-years)
- For the second consecutive quarter, U.S. M&A activity by value was the highest quarterly level since 2001
- There were ~1,595 deals worth $563 billion recorded in 1Q21, up slightly by value compared to the previous quarter of 1,708 deals worth $554 billion in 4Q20
- U.S. M&A activity in 1Q21 was also bolstered by the quarter’s record amount of divestiture activity
- There were 29 deals worth $50.3 billion announced in 1Q21, breaking the previous record set in 2Q07 of 34 divestitures worth $49 billion
- Financial sponsors continue to remain very active, with strong M&A and exit activity in 1Q21
- U.S. buyout activity reached its second-highest quarterly level by value since 2001, with 477 LBOs announced worth $160 billion
- The previous record was set in 2Q 2007, when 286 buyouts were announced worth $178 billion
- 1Q21 was the third quarter in a row where U.S. exit activity exceeded $100 billion, with 322 exits announced worth $114 billion
- U.S. buyout activity reached its second-highest quarterly level by value since 2001, with 477 LBOs announced worth $160 billion
Debt Capital Markets
- Market conditions in the broadly syndicated leveraged loan market continue to remain favorable but are better suited for issuers versus more aggressive transactions
- Institutional leveraged loan volume surged to $182 billion in 1Q21, the highest quarterly volume after the record of $171 billion in 1Q17
- CLO issuance remains strong, with $42.3 billion of issuance year-to-date and a healthy deal pipeline, issuance is expected to reach $105 billion in 2021
- The middle market leveraged loan pipeline stands at $4.9 billion for the week ending April 9th, with deal activity gaining momentum in recent weeks
- The high yield bond market continues to remain strong, with March 2021 new issue volume setting a record of $63.0 billion
- 1Q21 high yield bond revenue totaled $153.5 billion versus $73.9 billion in 1Q20
- 1Q21 high yield bond volume annualized would be a ~27% increase from the 2020 record
- 1Q21 high yield bond revenue totaled $153.5 billion versus $73.9 billion in 1Q20
- Outflows for the high yield bond funds totaled $5.9 billion in March 2021
- This follows outflows in January and February of $1.6 billion and $2.7 billion, respectively
- Outflows for high yield bond funds total $6.5 billion year-to-date, which follows inflows totaling $44.9 billion in 2020
- This follows outflows in January and February of $1.6 billion and $2.7 billion, respectively
- With the investment grade bond market currently at $459.8 billion, 1Q21 was the second busiest quarter of all-time compared to the $491.2 billion record posted in 1Q20
- March 2021 volume ended just above $200 billion, making it the fourth time ever that monthly issuance surpassed that mark
- April 2021 volume is currently at just over $25 billion, with 2021 total estimated issuance volume at approximately $1.2 trillion
- The 2021 investment grade M&A total now stands at $52.9 billion, or 11.3% of the total $467.5 billion 2021 supply
Equity Capital Markets
- U.S. stocks were up ~4.0% in the month of March and momentum has continued into early April, with the S&P 500 eclipsing the 4,000 mark for the first time in history
- Issuers continue to take advantage of peak market conditions, elevated multiples and strong recent financial performance to launch transactions (100 IPOs and 250 follow-ons priced in 1Q21)
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Monthly Round-Up Archive
- March 2020 Industrial Weekly Market Round-Up
- April 2020 Industrial Weekly Market Round-Up
- May 2020 Industrial Weekly Market Round-Up
- June 2020 Industrial Weekly Market Round-Up
- July 2020 Industrial Weekly Market Round-Up
- September 4 2020 Industrial Weekly Market Round-Up
- September 11 2020 Industrial Weekly Market Round-Up
- September 18 2020 Industrial Weekly Market Round-Up
- October 2020 Industrial Monthly Market Round-Up
- November 2020 Industrial Monthly Market Round-Up
- December 2020 Industrial Monthly Market Round-Up
- January 2021 Industrial Monthly Market Round-Up
- February 2021 Industrial Monthly Market Round-Up