Texas markets

Texas securities offerings struggle as stock and bond markets fall

Capital markets activity rebounded slightly in the first six months of 2022, but remained significantly below that of the first half of 2021.

The second half of 2022 didn’t start well either.

Texas lawyers conducted 94 securities offerings between Jan. 1 and June 30, worth a combined $54.9 billion, according to the Texas Lawbook, a news agency that tracks the Texas legal industry. State.

Securities offerings in the first half of the year were up 16% from the last six months of 2021, but fell 36% from the 148 offerings valued at $71.9 billion in the first half of 2021.

“Stock (or stock) markets have had their share of turbulence this year, which has kept IPO activity subdued compared to previous years,” said Carina Antweil, a partner at the Houston Baker law firm. Botts. “Unless the current headwinds ease, and that doesn’t seem likely in the near term due to all the macro factors at play, stocks will remain under pressure.”

Hillary Holmes, a firm partner of Gibson, Dunn & Crutcher, said the first half of this year had been the worst for stocks since 1970. It also became more expensive to borrow as inflation and the efforts of the Federal Reserve to rein in pushed up interest rates. higher, creating difficulties for companies accessing debt markets.

Shares fell again on Friday to cap their worst week since June. The Dow Jones Industrial Average lost 4% during the week to end at 30,822. The broader S&P 500 was down nearly 5% on the week, and the tech-heavy Nasdaq Composite was down 5.5%. .

Securities issuance continued to decline as the economy entered the second half of the year. Ten weeks later, Texas attorneys reported 21 securities offerings, down from 44 during the same period in 2021.

Holmes said she expects companies to be creative and ingenious in raising capital in the stock and bond markets, “especially as inflationary pressures negatively impact market performance. market”.