Financial markets ended 2023 with a robust fourth quarter as investors expressed enthusiasm over easing inflation data and the Federal Reserve’s indication of a potential end to its two-year interest rate hiking cycle, The Federal Reserve began raising rates in March 2022 to combat inflation hiking its key Federal Funds rate from 0% to a range of 525-550% However the Fed has left this range unchanged since its July 2023 meeting During the same time the Consumer Price Index (CPI a widely followed measure of inflation trended down from a high of a 91% annual rate in June of 2022 to 31% most recently Following…, Equities, The S&P 500 Index rallied 117% in the fourth quarter as every sector besides energy posted strong gains Financials rebounded on the prospects of a soft economic landing while the technology sector continued its year-long upward trajectory boosted by excitement for the prospects of artificial intelligence While large-capitalization stocks led the market for most of the year mid- and small-…, Fixed Income, Bonds staged an impressive fourth quarter comeback as interest rates declined The 10-year Treasury rate peaked at just below 50% in October before falling to end the quarter and year at 38% That quick plunge led to the Bloomberg US Aggregate Bond Index returning 68% for the quarter helping to turn the index positive for the full year  Despite the fourth-quarter rally that index has still lost…, Commodities, The Bloomberg Commodity Index fell 46% during the quarter reflecting one of the few negative asset classes during the quarter Oil prices and other commodity prices fell although gold prices performed admirably returning 114% during the quarter    Important Information The Bloomberg Commodity Index is a broadly diversified commodity price index distributed by Bloomberg Index Services Limited  The…

The HCM Technology M&A market is experiencing resilient transaction volumes in 2024 following a drop off in 2023 due to improvements in macro-economic conditions including unemployment and inflation rates that affected public markets across the globe Recent deal activity and the persistence of outsized transaction multiples implies investors continue to place more value on mission-critical…

Markets were volatile during the last quarter of 2024 as investors reacted to President-elect Trump’s election victory along with evolving interest rate expectations Despite this added volatility markets capped off a robust year and impressive two-year run Looking forward markets should be supported by strong economic conditions but high valuations should dampen expectations somewhat In this…, US markets reacted positively immediately following Trump’s early November election victory as stocks began pricing in campaign promises such as lower corporate tax rates and deregulation This rally mostly reversed in December as the prospect of higher-for-longer interest rates began setting in  The Federal Reserve cut its key Fed Funds rate by 25 basis points in both November and December but…, Equities, The S&P 500 Index rose 24% during the fourth quarter of 2024 resulting in a 250% return for the full year following a 263% return in 2023 The largest companies continue to drive most of the performance for the S&P 500 counting for more than half of the index’s annual return An equal-weighted version of the index fell 19% during the fourth quarter and rose only 130% for the full year …, Fixed Income , Bonds struggled during the quarter due to volatility in interest rates The Bloomberg US Aggregate Bond Index fell 31% during the quarter wiping out all but 13% of the index’s return for the full year Shorter-term bonds held their value better than longer-maturity bonds due to their lower interest rate sensitivity and the Bloomberg 1-3 Year Treasury Index returned 40% for the year  Below…, Commodities , Gold prices fell 08% during the quarter but still posted an impressive 261% return for all of 2024 Oil prices nudged up a little during the quarter to $72 per barrel Overall the Bloomberg Commodity Index fell slightly during the quarter but returned 54% during all of 2024 Important Information The Bloomberg Commodity Index is a broadly diversified commodity price index distributed by Bloomberg…

The Public Safety / First Responder Technology & Services M&A market is experiencing resilient transaction volumes in 2024 as investors continue to value emerging technologies that reduce costs increase efficiency and improve service quality Investors are paying outsized transaction multiples as software and service offerings continue to evolve across all levels of government Technology…

Year-end review, Primary influences on the sector Active participation by private equity firms continues to shape the packaging sector Until relatively recently publicly-traded strategic buyers would nearly always outbid private equity firms That no longer seems to be the case The sector has seen many examples of a company being sold by a family or divested by a corporation with the prevailing buyer being a…

Quarter-end review, As current events continue to quickly evolve our hearts and thoughts remain with the families across the globe that continue to be impacted by COVID-19 At Mesirow we continue to focus on the safety of our employees and their families our clients our business partners and the communities in which we operate As we move into a new year one with the promise of effective vaccines and new therapeutics…, COVID-19, We have been quantitatively graphing the COVID-19 pandemic since its earliest signals in Wuhan Hubei Province We believe that the team’s ability to source and understand local Chinese data sources and to analyze them at the height of the March panic gave Mesirow and our clients a considerable early advantage in understanding the enormous potential of the pandemic to disrupt both daily life and…

4Q2021 Review, “The markets look a lot less efficient from the banks of the Hudson than they do from the banks of the Charles” – Fischer Black “How about from the banks of the Potomac” – Blake Anderson Mesirow Capital Markets and Investment Banking Fischer Black having made the journey between two distinct worlds from MIT to Goldman Sachs neatly summed up the difference between economic forecast models and the…

Introduction, Knowledge which is acquired under compulsion obtains no hold upon the mind” – Socrates The Republic 375 BCE I would like to underscore for the American people that we understand the hardship that high inflation is causing and that we are strongly committed to bringing inflation back down to our 2 percent goal Over the course of the year we have taken forceful actions to tighten the stance of…

Market commentary, US Treasury market volatility remained elevated during the 4th quarter as the market continued to struggle with interpreting the Fed’s policy and the ultimate level of the Fed Funds rate as well as some changes in global monetary policy outside the US The final month of the year saw increased volatility with Treasury yields at the low end of the recent range heading into December This was a…