These deals took place during the final two weeks of August, typically a quiet period for the equity capital markets as portfolio managers and investment banks often take their summer holidays. In contrast, only $162m was raised during the same period last year, according to Bloomberg data.
Arnaud Blanchard, global co-head of equity capital markets at Morgan Stanley, who was the sole bookrunner for Walmart’s JD.com offering, highlighted that August presented a unique opportunity.
“August looked like a relatively good window where there was limited competing supply and a constructive market backdrop,” he said. He noted that the timing turned out to be more favourable than is usually expected for August.
The transactions were supported by a recovery in the S&P 500 Index, which approached near-record highs after Federal Reserve Chair Jerome Powell suggested that “the time has come” for US interest rate cuts.
Additionally, the Cboe Volatility Index (VIX) decreased to the mid-to-high teens following a sharp rise earlier in August.