Views from our leaders
Ryan Maupin, Managing Director
The US economy continued to exhibit considerable strength in the third quarter, and the recent GDP report incorporated evidence of declining inflation. GDP for the third quarter was at 2.8% and the fourth quarter appears to be outpacing original estimates. The government recently released data on the Fed’s favorite measure of inflation. The PCE-deflator was up 2.1% in September versus a year earlier, the lowest level of headline inflation since February 2021. The economy is running close to full capacity, with a historically low unemployment rate.
In recent days, there has been a rise in US equity prices on expectations of fiscal stimulus from a potential tax cut. We’ve also seen a rise in bond yields driven by anticipated higher inflation, the latter due to anticipated tax cuts and tariffs.
While we saw record amounts of leveraged loan issuances in 2024, we also continue to see a trend in liability management exercises. As such, the restructuring arms of certain investment banks and law firms are quite busy while other restructuring practice areas are not.
Read moreFEATURED ENGAGEMENT OF THE MONTH:
Deloitte T&R supported a manufacturing company with financial modeling services
Deloitte T&R was engaged by a highly regarded middle market private equity firm to assist a resource-constrained portfolio company with required operational reporting. Deloitte T&R helped the portfolio company develop a dynamic, and automated financial model that accepted data from 3 separate enterprise resource planning systems (“ERPs”) and produced weekly and monthly key performance indicator (“KPI”) flash reports. The model also generated accurate 13-week cash flow projections, which provided PE management with critical insights into future working capital and debt/liquidity issues.
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