- Date
- 18 December 2023
Full Disclosure:
The end to rising interest rates
By Jaysen Sutton |
Hi Reader 👋🏽,
As expected, US interest rates held steady in a meeting last Wednesday.
What is interesting is how a single word can make a difference in how the market interprets the future decisions the central bank.
In this case, the inclusion of the word ‘any’ to the bank’s policy statement was taken to suggest an end to raising interest rates. This was backed up by forecasts released by the Federal Reserve, which showed higher-than-expected cuts to interest rates.
How does it impact law firms?
For law firms, the rise of interest rates has particularly impacted M&A departments, as companies hold off buying and selling companies, amid higher borrowing costs and uncertainty.
But there are also opportunities here. As an M&A partner from Skadden pointed out last week, the glut has led to some ‘complex and creative structuring’ from M&A teams, while private equity firms have invested more of their own capital and sponsors have ‘teamed up with other sponsors’.
Have any thoughts? I'd love to hear your perspective below!
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