Welcome to Western Capital Markets’ 2021–2022 Blog and News Recap

On behalf of the WCM team, we hope you all had a great summer and we’re looking forward to seeing everyone again this upcoming year.

Similar to last year, the Logistics team will continue providing blog posts covering weekly recaps of our Educational Seminars, interviews with upper-years and industry alumni/professionals to provide clarity on different career landscapes, and in-depth research posts to offer insight on important concepts and world events.

Also, find below an interesting overview of the recent volatility in the SPAC market!

Introduction

On August 29th, the WCM team presented an ‘Intro to Finance at Western’ where the Executive Team provided an overview of WCM and spoke to their experiences on navigating the financial services industry; you can find a recap below:

Who are We? What is WCM?

The Western Capital Markets Team (WCM) is an educational club that delivers a holistic member experience through connecting theory with application, allowing members to explore and develop a genuine interest across pillars of finance. This makes learning theory and achieving recruitment success an organic part of the member experience, rather than the sole focus.

Our Mission Statement:

WCM’s mission is to educate, develop, and provide real-world opportunities for our members to explore and thrive in the world of finance.

How We Fulfill Our Mission:

Education

Development

Events

Outreach

How You Can Get Involved

2021–2022 Events Snapshot

Fall Semester

Spring Semester

Industry Conference Overview

West Coast Conference

New York Conference

Toronto Conference

Facebook Group

Make sure that you are currently a member of our active Facebook Group here to stay informed on club initiatives!

What to Expect from Our Group?

How to Join?

Club registration will open on September 12th, 2021 and you can become a member for only $20.

Just a few benefits of joining:

Next Steps to Getting Involved

Annual General Meeting

Director and VP Hiring

Educations and Mentorship Program

A look at the 2021–2022 WCM Executive Team

Our team is eager and excited to meet everyone so feel free to reach out with any questions, and suggestions or just to chat!

What’s in the News?

The SPAC Selloff

Special Purpose Acquisition Companies or SPAC’s have been a hot topic of discussion for months now. A SPAC is a company that has no operations and is formed strictly to raise capital through an IPO with the purpose of acquiring an existing private company. The operation completed through a SPAC is similar to a standard reverse merger, with the difference being that SPACs do not have any prior operating history.

The cumulative market value of companies that completed SPAC mergers since December 2020 reached its peak in February 2021 at nearly USD$330B but had since dipped to USD$250B, a broad selloff that has wiped about roughly USD$75B of value. Earlier this year, it was common for SPACs to always rise in value after announcing deals. Now, the opposite is becoming the norm as about 75% of SPACs that have announced deals but haven't completed them are trading below their listing price, seeing their share prices fall. This is not to say that the SPAC market has collapsed — the value of the sector, at USD$250B is still up from its USD$100B value from roughly a year ago — but the blank-check boom has hit a selloff.

Many investors have called this reversal inevitable as many of the companies that are merging with SPACs have zero or little revenues but are being valued in the billions; share prices were rising when there was little fundamental reason behind the gains. The air has come out of the bubble said Roy Behren of Westchester Capital Management.

This downturn has hurt individual investors who bought into the craze near its top, with several SPAC-related companies being some of the most traded stocks on Robinhood and other brokerages earlier this year. Given the protection typically attributed to SPAC creators, individual investors are often stuck with the losses — creators are protected through the right to buy a large number of shares at discounts, and to minimize losses, they often sell their SPAC shares before deals are completed.

To learn more about this topic and enhance your understanding, a few insightful articles have been linked:

WCM’s mission is to educate, develop and provide real-world opportunities for members of the Western community to explore their interest in finance.