Wall Street banks see robust deal pipeline despite market volatility
JPM•Bank executives said investment banking pipelines remain solid despite rising bond yields and volatility, with transactions more likely to be delayed than canceled. Global M&A volumes fell 41% from the prior quarter to $993 billion in the third quarter, while US IPO activity slowed amid valuation concerns.
1. Deal pipeline remains active
Executives at JPMorgan, Citigroup, Morgan Stanley and Goldman Sachs described investment banking activity as solid, citing active strategic discussions and clients continuing to pursue deals. JPMorgan CFO Jeremy Barnum said the rate selloff prompted some slowdown in the second half of September, but he viewed deals as more likely delayed than canceled. Investment banking fees rose at most major US banks in the third quarter, with Bank of America an outlier.
2. M&A volumes declined
Global M&A volumes fell 41% from the prior three months to $993 billion in the third quarter, dropping below $1 trillion for the first time since the second quarter of 2025 as megadeals became less numerous. Executives said higher borrowing costs and valuation uncertainty could delay near-term transactions.
3. IPO market turns selective
US IPO activity lost momentum after the summer as volatile markets and valuation concerns made investors more selective. Holtec and Oura postponed plans, while SoftBank-backed SB Energy delayed its US IPO roadshow. Goldman Sachs CEO David Solomon said September softened when companies received valuations 10% to 15% below expectations; Citigroup CEO Jane Fraser said the IPO market remained selective and more focused on follow-on offerings.
