Wall Street banks see robust deal pipeline despite market volatility
XLF•Executives at major U.S. banks said deal pipelines and client discussions remain strong, though rising bond yields and market volatility may delay transactions. Global M&A volume fell 41% from the prior quarter to $993 billion, while U.S. IPO activity has weakened amid valuation concerns.
1. Deal pipelines remain strong
Executives at JPMorgan, Citigroup, Morgan Stanley and Goldman Sachs described investment banking pipelines as robust and client strategic discussions as active. JPMorgan CFO Jeremy Barnum said some deals slowed in the second half of September after a bond-market selloff, but he viewed them as delayed rather than canceled. Citigroup CEO Jane Fraser said the U.S. remained the center of activity for advisory and capital markets.
2. M&A activity falls
Investment banking fees rose at most major U.S. banks in the third quarter, with Bank of America the exception. Global M&A volume fell 41% from the prior three months to $993 billion, below $1 trillion for the first time since the second quarter of 2025, as megadeals declined.
3. IPO market cools
U.S. IPO activity has lost momentum since the summer as volatility and valuation concerns made investors more selective. Holtec, Oura and SoftBank-backed SB Energy delayed IPO plans. Goldman Sachs CEO Solomon said high expectations for fourth-quarter IPO activity could disappoint, while Renaissance Capital strategist Matt Kennedy cited rising rates as a meaningful headwind.
