Dhe banks are tightening the reins. After years of boom, business is anything but smooth. And has been for quite a while. According to a survey by the analysis company Dealogic, the proceeds from bonds, shares and takeovers fell by a good 40 percent across the industry after a record in 2021 last year. In the first three months of 2023, they fell again by a third compared to the previous year and are thus lower than they have been for five years.
The higher interest rates make transactions more expensive, and the uncertainty prevents IPOs. “Nearly everything is difficult at the moment,” complains an important German banker. The only discipline that has been neglected for a long time is experiencing a real renaissance: restructuring. An era is coming to an end for investment banks.