Bloomberg Law
Nov. 16, 2020, 10:27 AM

ANALYSIS: Investor Hunger for SPACs Is Hitting Limits … for Now

Preston Brewer
Preston Brewer
Legal Analyst

The insatiable appetite for U.S. SPAC IPOs may finally have reached its limit. It is not that investors have suddenly turned sour on blank-check companies. Rather, broader economic concerns, combined with the investment and insurance industries’ own limits on SPAC exposure, are producing a market pause and a trend toward increasingly discerning investing.

Initial public offerings for special purpose acquisition companies (SPAC IPOs) have enjoyed a remarkable run in 2020. Through Nov. 6, 170 SPAC IPOs have priced on U.S. exchanges, raising an incredible $62.8 billion. October has been a rough month for SPAC performance — but not in terms ...

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