Cohen & Company Capital Markets Highlights Strong 2023

Capital Markets Highlights Strong 2023

Cohen & Company Capital Markets Highlights Strong 2023

Market Navigation:

De-SPACs: Helped clients navigate through difficult markets, using solutions such as convertible notes, IP notes, and FPA-like structures. The de-SPACs completed in 2023 that had strong fundamentals and were attractively priced did better than those that closed the previous year.

Positive Outlook: Expect an IPO rebound as inflation balances and economic growth slows in the upcoming year.

Transaction Highlights: Bitcoin Mining: Played a lead role in some of the major Bitcoin mining transactions such as Peak Mining’s acquisition of its Texas data center, Akron Energy’s purchase in Ohio, and Blockstream’s $125 million convertible debt offering.

Team Expansion: Strategic Hires: The appointments of senior banker leaders Sean Bernsohn, Zac Costello, and Steve Weiner strengthened their positions. Overall:

Successful Year: In 2023, the Capital Markets team of Cohen & Company showed a high level of successful implementation and growth. Market Leader: Their unique approach and emphasis on hot spots of growth such as de-SPACs and Bitcoin mining make them the foremost strategic advisor.I hope this summary is useful! If you have any other questions regarding Cohen & Co. or their capital markets performance, please let me know.

Capital Markets Highlights Strong 2023

The major trends in the capital markets in 2023 included

Reforming the Regulatory Agenda: However, there was a need to transform the regulatory agenda so that capital market growth could be fostered.

  • Managing Profitability Pressures Through Technology Ownership: Firms sought to alleviate profitability pressures through technology ownership and digitization which enabled faster innovation
  • Monetization of Data: The industry moved towards monetizing data.
  • Economic Uncertainties and Market Volatility: The capital markets sailed through rough waters capturing the tone of gloomier times, market volatility and paranoia manifested in geopolitical uncertainty.
  • Changing Product Dynamics and Fee Compression: There were recurring themes in the capital markets industry that included changing product dynamics, fee compression, and aggressive regulatory agendas.
  • Resilient Consumer Spending and Labor Market: Critically, resilient consumer spending and a healthy labor market were likely to support various industries ranging from travel and leisure
  • These trends are a result of the industry’s fight against economic threats, regulatory shifts, and technology management and data that is prevalent in capital markets.
  • Capital Markets Highlights Strong 2023
  • Capital Markets Highlights Strong 2023 The major challenges faced by the capital markets in 2023 included:
  • Economic Uncertainties and Market Volatility: The capital markets constituted a reflection of the macroeconomic turbulence, and market instability in terms of volatility and geopolitical tension.
  • Inflation and Interest Rates: However, the second half of that year turned out to be a cause for cautious optimism concerning the stabilization of inflation and interest rates. However, structural inflation and banking on a “higher-for-longer” rate environment were sore points
  • Regulatory Changes: There was a change in the regulatory agendas, which were meant to result in significant changes that would make major transformations as they introduced new regulations and rules on US capital markets.
  • Profitability Pressures: This industry was also defined by the move of businesses to manage cost pressures using technological ownership and digitalization, this is meant to speed up innovation. Data monetization potential in the capital markets field
  • Market Uncertainty and Geopolitical Events: For the markets, some of the geopolitical conflicts that shaped the setting were the war in Ukraine, the debt ceiling crisis in the USA, and Israel vs. Gaza
  • The problems mirror the results of economic, regulatory, and geopolitical issues within the capital markets during 2023

Capital Markets Highlights Strong 2023

The major geopolitical factors that impacted the capital markets in 2023 included:

  • Russia-Ukraine War: 1. One of the economic consequences that followed from this ongoing Russia-Ukraine conflict was evident in Europe and around the world, specifically since it problematized financial markets2
  • China’s Economic Reopening: 1 The policy changes and economic reopening in China following the COVID-19 pandemic brought great change to commodity prices, as well as global supply chains.
  • Deglobalization: The capital markets faced challenges in the form of deglobalization triggered by geopolitical rivalries and trade wars.
  • Tensions between Russia and NATO: The lingering Russia-NATO tension and other geopolitical risks including cyberattacks, strategic competition between the US and China as well as climate risk only contributed to market uncertainties4
  • U.S. Debt Ceiling Crisis: The threat of the U.S. government shutdown and the US debt ceiling crisis only contributed to general economic uncertainties on a geopolitical level2
  • This market faced volatility, uncertainty, and challenges because of geopolitical factors.

    Capital Markets Highlights Strong 2023

    De-SPAC Advisory Statistics for 2023
    Rank Advisor NameValue ($M) Market ShareTotal Deal
    1CCM$15,95327.9 %29
    2Maxim Group$9565.5 %9
    3EF Hutton$1,3044.8 %8
    4Roth Capital $9923.6 %6
    5Citigroup$7,8943.0 %5
    6Credit Suisse$7,2993.0 %5
    7Chardan$27,3692.4 %4
    8EarlyBirdCapital$9572.4 %4
    9Arc Group$5802.4 %4
    10Jefferies$1,3191.8 %3
    11TD Cowen$1,2521.8 %3
    12BTIG$1,0451.8 %3
    13UBS $1,0081.8 %3
    14Morgan Stanley$4,8241.2 %2
    15BTG Pactual$1,1561.2 %2
    Total $73,90864.8 %90
    De-SPAC transactions include all De-SPAC transactions announced or closed between 1/1/2023 and 12/31/2023 (1)
    De-SPAC and IPO Advisory Statistics – Total Transactions
    J.P. Morgan14
    Bank of America12
    Goldman Sachs12
    Piper Sandler10
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