US investment banks see early signs of revival in dealmaking

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NEW YORK, Oct 27 - Major Wall Street firms said a dismal year of dealmaking appears to have hit a trough, and now some companies are looking to merge, offering hope that investment banking revenues could pick up after a disappointing third quarter.

"This is going to happen in fits and starts a little bit, and so not all of those discussions are going to wind up in announcements, and not all the announcements will close," Lazard CEO Peter Orszag told Reuters in an interview. There was"definitely ... some difference relative to six to nine months ago" and that for mergers & acquisitions the"market is bottoming out," he said.

Pick noted that given the three- to six-month lag before deals close, the forward pipeline is the relevant indicator. CONSERVATIVE PREDICTIONS Predictions for 2024 remain conservative given an uncertain economic environment. Wild cards include U.S. interest rates, inflation and conflicts in Ukraine and the Middle East.

"We have begun to provide more leverage finance for key clients," and companies are becoming more active in issuing debt, Fraser said, but the IPO outlook appears more fragile. At Bank of America's earnings, expectations were broadly steady after investment-banking fees grew 2% in the third quarter, helped by deals from bankers serving middle-market companies.

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