Q2 financial services dealmaking falls nearly 31% from Q1: KPMG

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Dealmaking in the financial services sector dropped quickly in the second quarter when compared to the previous quarter, according to KPMG data released Tuesday. Deal volume totaled 1,442 transactions in the second quarter, down 30.9% from the first-quarter’s tally of 2,087. The first half of 2022 generated 3,529 deals, down 8.2% from the 3,842 transactions in the first half of 2021, while total deal value in the first half of 2022 rose 2.6% to $354.4 billion, in the wake of a rise in the value of capital market transactions. “Step increases in interest rates and inflation primarily drove the decline in activity,” KPMG partner Timothy Johnson said. Looking ahead, KPMG’s outlook remains mixed. “On one hand, the fundamental trends that have been driving activity remain in place,” KPMG’s Johnson said. “On the other, market sentiment is largely pessimistic and the outlook for interest rates and inflation is challenging.” The Financial Select Sector SPDR ETF XLF,
-0.64%
is down 0.3% on Tuesday and has fallen 15.9% in 2022. KBW Nasdaq Bank Index BKX,
-0.90%
is off by 0.8% on Tuesday and off by 19.2% for the year. The S&P 500 SPX,
-0.76%
has fallen 17.3% in 2022.

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Credit: www.marketwatch.com /

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