On May 12, 2025, Cravath published the latest edition of its Finance & Capital Markets Quarterly Review, which has been redesigned for the Q1 2025 edition to provide greater insight into practical points, key takeaways and relevant developments related to the bond, equity and loan markets and restructuring activity during the first quarter of 2025. Highlights from this edition include:
MARKET TRENDS
- U.S. financing activity was generally elevated in Q1 2025 compared to Q4 2024, other than follow‑on equity offerings which decreased meaningfully.
- Year-over-year trends for Q1 2025 relative to Q1 2024 were somewhat mixed, with increased activity for investment-grade bonds, syndicated leveraged loans and IPOs but decreased activity for high‑yield bonds and follow‑on equity offerings.
- Following the end of the first quarter, financing activity generally ground to a halt in response to market volatility and a challenging macroeconomic and geopolitical environment.
OTHER DEVELOPMENTS, INCLUDING REGULATORY, RESTRUCTURING AND CRYPTO UPDATES
- Following the change in U.S. presidential administration in January 2025, related changes at the SEC led to a dramatic and rapid shift in priorities and approach to key legal issues during Q1 2025.
- The SEC dismissed several high‑profile enforcement actions against cryptocurrency industry participants, emphasizing the end of an enforcement‑based approach to the industry.
- During Q1 2025 and the weeks that followed, the SEC issued statements regarding "meme coins" and "stablecoins", outlining the view that cryptocurrency assets fitting certain criteria do not constitute securities under federal securities laws.
- The SEC also effectively abandoned the "climate rule" that it previously enacted.
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