Global Financials & Fixed Income Research: 2Q26 M&A Quarterly: On Track for a Record Year

Research evidence excerpt

Global Financials & Fixed Income Research: 2Q26 M&A Quarterly: On Track for a Record Year

o portfolio companies and unlock value more efficiently.

Thus, we view valuations for the alternative asset managers as compelling, with

shares underperforming the broader market on persistent concerns around private

credit despite business models that we believe are more durable and offer better LT

growth potential than current prices imply against an improving capital markets

backdrop.

In line with our expectations ahead of the 2024 election, the Trump

administration has pursued a lighter-touch regulatory regime, albeit with

important nuances under the surface. That means the M&A backdrop has become

more constructive (not just due to policy factors), but large technology and

strategically salient transactions have continued to face scrutiny. Recent agency

practice reinforces a continued willingness to resolve concerns through negotiated

remedies, including structural divestitures, behavioral commitments and consent

decrees rather than defaulting to litigation or outright blocks. The Supreme Court’s

June ruling expanding presidential removal authority over independent agency

officials, including the FTC, reinforces the administration’s ability to carry out this

vision for antitrust enforcement. In our view, that means a continued focus on

industrial policy & scrutiny for deals involving sectors that are critical to national

security (an expanding category).

US credit markets remain firmly open, with 2Q26 issuance continuing to build on

1Q's record pace. While AI-related issuance headlines have dominated YTD, M&A-

related activity has picked up meaningfully in absolute terms. Acquisition-related IG

supply is up 44% YTD to $158bn, even as its share of overall IG issuance has eased