FactSet Insight: IPOs and SPACs Come Full Circle as Liquidity Dries

See the full article on FactSet Insight.


The first-quarter earnings season was a mixed bag across the Financials sector. While the group reported the third-largest aggregate earnings surprise among the 11 sectors, Financials’ total earnings-per-share (EPS) growth change was –19.8%. Citigroup and Goldman Sachs reported strong profits and Bank of America’s Brian Moynihan was upbeat about the state of the consumer. Jamie Dimon at JPMorgan Chase was less sanguine, citing a myriad of challenges in the global macroeconomy.

Key Points:

  • Capital markets are much softer versus a year ago, as the number of initial public offerings (IPOs) and special-purpose acquisition companies (SPACs) is down sharply
  • Investors continue to grapple with a changing macro landscape while bankers struggle with higher costs of capital
  • Traders must pay close attention to share lock-up period expiration dates as this market-moving corporate event can lead to volatility spikes