PIPR - Piper Sandler Suffering Primarily On Fixed Income

Summary

• Piper Sandler has been a business whose fundamentals respond quite well to market uncertainty on balance.
• Mid-market corporate finance is less exposed to the death of the megadeal and shows sequential improvement consistent with economic data.
• The main problem is businesses exposed to fixed income, while primarily investment grade, cannot do well with the current rate trajectory.
• Equity brokerage likes volatility, which offsets some fixed income declines, and overall strong 2021 comps are the things mostly making Piper look bad.
• Still, the multiple is quite high and they'll be affected by sentiment.

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