What's going on?

2021 is on track to be a record-breaking year for mergers and acquisitions (M&A), after companies took advantage of their hot vax summer to really let loose.

What does this mean?

Firms have struck $4 trillion worth of deals since the start of 2021 � more than twice as many as they had done this time last year (tweet this). That�s partly because historically low interest rates have made it cheaper than ever for them to borrow money, which means they can finally splurge on a buyout they�ve long had their eye on. And it�s partly because they�re enjoying record-high stock prices, meaning they don�t need to issue as many new shares � or spend as much cash � to buy what they want.

Why should I care?

For markets: Tech�s still leading the way.
The dealmaking boom has spanned every sector, with plenty of companies citing double or triple-digit percentage increases in the number of deals they�re striking versus last year. But it�s tech firms � which, not coincidentally, have seen the most significant uplift in their share prices in the last year � that have been involved in around 21% of all M&A activity this year. And analysts don�t think that�ll stop: tech firms are expected to keep leading the way over the next 12 months, as they continue to play a pivotal part in our working-from-home world.

The bigger picture: The real winners.
Investment banks take a cut of every deal they make happen, so it follows that banking giants JPMorgan and Goldman Sachs both reported strong revenue from their dealmaking businesses. A lot of that came from the Middle East, where governments have been looking for new ways to diversify their economies after the oil market�s slump last year. And it�s not just JPMorgan and Goldman: investment banks the world over have been so busy that they�re reportedly scrambling for new hires.