0/ The retail bid has disappeared from the SPAC market which was an anomaly itself as opposed to the norm.

This has caused SPACs with & without deals (prior to closure) to underperform the broader growth sell-off since mid-Feb & now most are trading +/- 2% from NAV.

1/ Historically there was a decent bid at the IPO by merger arb funds given the "free put" option to redeem at par coupled the warrants & timeclock on the sponsors leading to attractive IRRs vs. cash. This is why low rates helped fuel the boom.

2/ When the retail bid started to come in last summer / fall arbs were able to increase their participation as these IRR's were being pulled forward (e.g., they didn't have to wait for deal announcement for some of these SPAC's to trade at a 3-10% premium to trust value).

3/ You also saw increased IPO participation from HF's & LO's who were becoming active PIPE participants look to capitalize on this which led to even greater SPAC issuance peaking with $54B in Feb '21.

4/ When growth stocks started to sell off in Feb both the retail + inst'l community cut low conviction SPAC positions first. With high profile growth names down 20-30% you saw these names go down even more.

5/ The issuance calendar was a bit slow to cut and now the cadence of new SPAC IPO's in April is on track for the lowest month since last June; while PIPEs have been in market longer & longer.

6/ Now there's only a handful of unannounced SPACs trading at a ~5%+ premium to NAV (these #s have come in slightly since last week) https://twitter.com/JulianKlymochko/status/1383833846852947981?s=20

7/ There were a number of deals announced in Feb / March that are trading below trust with concerns about redemptions from shareholders resulting in deal cuts & waiver of minimum cash conditions to just the total that was committed from PIPE participants.

8/ If out year-projections were predicated on the total cash raise and now that cash # might be cut in half or more how should that be reflected in price?

9/ The market has started to adjust & the "free ride" of 2H20-early 1Q21 of every deal rallying +10-15% on announcement is gone.

You can see the avg deal move on annc in Jan was +19.1%, Feb +15.1%, March +4.1%, April +8.9% to date.

10/ As the market starts to regain rationality the underwriting bar needs to revert back to the pre 2Q21 highs on the investment merits of the deal / sponsor / alignment of incentives.