A growing pipeline of deals - buoyed by rising chief executive confidence, a stronger consensus about interest rate hikes, and an abundance of available capital - points to a post-Labor Day pick-up in M&A-related leveraged loan issuance. If borrowers were wary in the first half of the year, opting to hold off on acquisitions given an uncertain rate outlook and a series of market shocks that sent volatility rippling through the financial markets, looking ahead there is more clarity on the rest of the year and into 2017, in particular with respect to where the Federal Reserve will be over the next six to nine months. The technology sector, and the technology, media and telecommunications area more broadly, as well as the Pharmaceuticals sector, are likely to lead the way on M&A. "CEO confidence is high, which is the number one factor in getting M&A deals off the ground," said Jim Kuster, managing director and head of corporate M&A at Citizens Bank. M&A volume will probably not exceed 2015 totals, but the second half should be better. The availability of capital is quite strong and the capital markets are very liquid, added Kuster.
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