Weekly Update: Assessing the Impact of COVID-19

Below are our weekly summary thoughts on the M&A market, the economic outlook, and reasons to be optimistic.

Reasons for Optimism in M&A and Capital Markets

  • 136 deals closed in the U.S. & Canada over the past 7 days (last week 103 deals closed)
  • The U.S. 10-year note remains steady at 0.61%, while yield on 30-year bond climbs to 1.23%
  • Boeing launches $25B bond offering to meet near-term funding needs
  • Federal Reserve Continues to Massively Accommodate
    • Pledges to keep rates near zero
    • Establishes Main Street Lending Program for small and medium-sized businesses
    • Continues substantial quantitative easing program to provide liquidity to the U.S. markets

Good News We’ve Been Reading

Economic Recovery Beginning Across Globe

  • United States: 30 states begin to partially reopen, with governors in other states devising reopening plans
    • Macy’s to open 68 stores Monday
    • Best Buy to open 200 stores in May
    • Nascar to return to live racing May 17 (without fans)
  • Italy’s public parks, junior high schools, and stores reopen in safe zones
  • Germany’s smaller stores open, and children return to schools early next month
  • Spain resumes restaurant carryout options, individual sports, and opening of small shops
  • South Korea & China revive cross-border business travel

Vaccine Development Update

  • To date there are over 115 coronavirus vaccines in development
  • Pfizer begins human testing this week, Moderna prepares to enter second phase of human testing, Oxford University human testing underway
    • Each would be ready for emergency distribution in Fall if proven successful
  • UN launches global push to speed vaccine production

Updates in COVID-19 Testing

  • U.S. government to send 50 states enough tests to screen at least 2% of respective residents
  • Walmart supports 20 self-swab test sites in 12 states, expects to operate 100 sites by June
  • CVS expands self-swab test sites in parking lots to 1,000 sites, with goal of processing up to 1.5 million tests a month
  • Los Angeles becomes first major city in U.S. to offer testing to all residents, regardless of symptoms

Wisdom from Tommy Newberry, Wall Street Journal and New York Times best-selling author

  • Consider what you are not doing right now that would make you emerge stronger, better, and faster
  • Each moment is a new beginning, the opportunity to have a mental sunrise
  • When focusing on the positive, the negative might still be out there but fades into the background
  • Be a leader who champions courage and boldness, not a perpetuator of fear
  • Focus on what you have, what is possible, and the future

ArkMalibu is happy to answer any questions you may have and to offer guidance during this challenging time.

Until our next update, we send best wishes to you and yours for safety and health.