Are SPACs Here to Stay?

SPACs (or special-purpose acquisition companies) seemingly became an overnight sensation as the alternative way to take a company public. But, according to a report published by UBS in April, SPACs actually entered a cooling period this spring after a hot winter.

“SPAC return patterns over the last six months also suggest fairly convincingly that speculation, not fundamentals, was driving prices. Consequently, SPACs…became a quintessential ‘buy the rumor, sell the news’ asset,” the report stated. READ MORE