During a fireside chat hosted by IPO Edge at Nasdaq MarketSite on October 5, Samuel Kerr, Head of Global Equity Capital Markets and Head of Mergermarket EMEA at ION, discussed the state of global equity capital markets. He noted that issuance has surpassed $1 trillion in the first nine months of 2026, positioning the year to match the record level seen in 2021.
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Kerr highlighted that the dominance of artificial intelligence (AI) infrastructure is a significant factor driving market activity. He pointed out that major transactions involving companies like Alphabet and SpaceX are central to these figures, indicating a strong concentration of technology investments at the top of the market. Kerr remarked on Alphabet's recent decision to raise dilutive equity, marking a shift after roughly two decades of returning capital to shareholders, as the company heavily invests in computing capacity and AI.
However, he also indicated signs of a slowdown in the U.S. IPO market, attributing it to rising borrowing costs and increased liability concerns surrounding AI companies. Higher sovereign-debt yields are raising the weighted average cost of capital for companies, which is leading to delays in IPOs. Kerr also mentioned emerging risks associated with AI models, suggesting that a slowdown in AI spending could enhance profitability for hyperscale companies while mitigating certain risks.
Samuel Kerr has been a prominent figure in global equity capital markets since 2017, providing insights that are highly regarded among investors, bankers, and financial professionals. He is a frequent commentator on platforms like CNBC and is regularly quoted by major media outlets, including Reuters and The New York Times.