3 stats that show just how much investor appetite for SPACs has declined

3 stats that show just how much investor appetite for SPACs has declined

After the market was hit with an earth-shattering number of SPAC issuance in the first quarter of 2021, the blank-check frenzy may be starting to lose steam.

As interest rates climb, most SPACs have underperformed the market, along with other high growth, long duration stocks, according to Goldman Sach's David Kostin.

"Announced or completed de-SPAC acquisitions tend to be early-stage businesses with high growth, meaning they tend to have long duration cash flow profiles. Active SPACs have even longer duration because they have not yet purchased a business," said the chief US equity strategist in a recent note.

Here are three statistics compiled by Kostin's team that show just how much investor appetite for SPACs has declined.

Additionally, SPAC issuance has slowed dramatically in the second quarter of 2021 as only siex new SPAC IPOs have come to market so far. At this point in the first quarter, 55 SPAC IPOs had been completed.

Kostin's team said that a key driver of the slowdown in SPAC issuance is heightened regulatory scrutiny. The SEC has recently released two statements expressing concerns over the reporting, accounting, and governance of special-purpose-acquisition companies.

However in spite of this, the strategists said that SPACs could drive a total of $900