GM’s successful initial public offering signalsthat IPOs are back, Jes Staley, CEO of JPMorgan Investment Bank, told CNBC Thursday, but he said that M&A's are not.
“There is a shift to risk asset by investors and that should benefit the IPO market. But what we look for is whether the large M&A [mergers and acquisitions] market is coming back as well," said Staley.
"When we see corporations that have a lot of cash on their balance sheets making those strategic transformational M&A deals, I think that's when you can put a check by the box that corporate America wants to start investing again," Staley went on to say.
Staley said M&A’s aren’t on the comeback trail yet because the volume of deals above $10 million isn’t strong enough.
Added Staley: “We all need to recognize the courage of the Obama administration and the US government in supporting such an iconic company as General Motors.”
JPMorgan Chase was the lead underwriter on the GM IPO.