Unstable markets drag Canadian M&A, bond issuance to four-year lows

“We expect the second half of the year to really hopefully return to stability, or some certainty on the way forward and the returns we expect from M&A,” Sean Rowe, Country Deals Markets and Value Creation Leader, PwC Canada. Total Canadian M&A Transaction Volume $. 7 billion in the first quarter, down . 3% compared to a year ago, the worst start since .

After eight o’clock, the Bank of Canada raised interest rates consecutively, and the Bank of Canada suspended interest rate hikes, while the Federal Reserve fine-tuned the rate hike by 25 percentage points in March and said it was on the verge of pausing further interest rate hikes.

Sarfraz Visram, head of Canadian and international mergers and acquisitions at BMO, said determining where rates would be settled would help the deal. However, he added, sellers need to reset their expectations on valuations – and that hasn’t happened yet.

“I would say price expectations -17% is higher than I think it should be.”

Some market participants pointed to a strong start to the second quarter and strong momentum in the mining sector.

1000 Copper Teck Resources Mining Corporation ( NYSE: 1000TECK) Reject Glencore (OTC: 243GLNCY

) Plc’s $. $5 billion in bids Monday. The proposal came after Lundin Mining (OTC: 52784LUNMF) Corp purchased a % of Chilean Caserones shares at $50 Ten thousand last month.

In transactions announced in the first quarter, RBC Capital Markets, Bank of America (NYSE:

BAC

)’s Bank of America Securities and JPMorgan Chase occupy the top three positions in the advisory rankings.

Canada’s corporate debt also fell 8.9% in the first quarter, touching the Canadian dollar .$1 billion (.7 billion) vs. a year ago, lowest Q1 since

.

Abeed Ramji, Canadian Debt Capital Mar Kets, who heads TD, said the lack of bank issuance had affected the corporate debt market, adding that funding has become more expensive in global markets.

($1=1.70 Canadian dollar) 243