M&A boom likely to continue, says BCA Research

Strong employment trends at brokerage firms signal that merger and acquisition activity is likely to remain robust, suggests BCA Research.

In a research note, the firm observes that, “the recent pop in securities industry employment points to a burgeoning deal pipeline, and thus, a return of earnings strength in the coming quarters.”

“The financial forces behind the M&A boom remain intact, namely a deep pool of cheap capital and an underleveraged corporate sector, underscoring that a sudden halt to deal making is unlikely in the absence of an exogenous shock,” BCA concludes.