M&A Boom Still in "Early to Mid-Innings," Strategist Says
Private equity's reach is everywhere -- including the announced takeover of wireless carrier Alltel. But will private equity continue to help drive the market rally? Linda Duessel, equity market strategist at Federated Investors, told CNBC's Erin Burnett and "Street Signs" viewers that private equity is nowhere near its last gasp.
Alltel reportedly jumped on the bid from TPG Capital and Goldman Sachs' buyout arm in haste -- spurning potentially richer offers for the guaranteed bird-in-hand, ahead of a feared downturn. Does that spell a drying-up of private equity cash?
Duessel said that "everything we've heard" points to a "very powerful" continuance of merger and acquisition activity -- driven by private equity.
She told Burnett that "one of the most common words you hear is 'liquidity,'" and liquidity always feeds into the financial markets, she maintains. The strategist believes that the market is in the "early to mid-innings of this M&A boom."
"Yes, there's a problem looming, but it can take a lot longer" to manifest than many investors fear, Duessel said.