A boom in equity markets is being driven by an appetite for profit that's outweighing fears about economic disruption and inflation risks, said Goldman Sachs Group Inc. Chief Executive Officer David Solomon.
"We are definitely in a moment where there's more greed than there is fear," Solomon said in an Economic Club of New York appearance Tuesday. "The capital is available."
It's been a bumper few weeks for Goldman, which has secured lead positions on some of the largest equity raises in history. Despite fears of inflationary pressures and ongoing conflict in the Middle East, US stock markets have risen rapidly and investors are clamoring not to miss out on major deals.
On Monday, it was announced that Goldman is a lead adviser on Google parent Alphabet Inc.'s $80 billion equity raise, one of the largest deals ever of its kind. The investment bank also secured a coveted lead underwriter position on SpaceX's initial public offering, the largest of all time, which is likely to rake in about $500 million in fees for the banks working on it.
When prompted, Solomon conceded that risks of higher inflation could provoke interest-rate hikes from the Federal Reserve. "I think the inflationary pressure is real, and if it's stronger than expected, I think you'd see the Fed take action," he said.
At a conference last week, Goldman President John Waldron boasted about the company's large lead in league tables. The bank holds a 29% market share of mergers-and-acquisitions advisory by value year-to-date, according to data compiled by Bloomberg.
"We have an almost $300 billion lead in the league table at this point in the year, which is our largest lead ever at this point in the year," Waldron said. "Hope I didn't just jinx that."
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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