How Spacs went splat

Spacs, or special purpose acquisition companies, were all the rage at the start of the pandemic. These shell companies raise cash by listing on the stock market, and then seek a merger with a private company. This created a novel way for companies to list on the stock market without having to go through the traditional initial public offering process.

Now, Spacs are floundering. The FT’s Ortenca Aliaj talks with guest host Jess Smith about how the Spac investment boom collided with rising interest rates and regulatory threats, and ultimately went bust.

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For further reading:

Spac boom dies as wary investors retreat

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On Twitter, follow Ortenca Aliaj (@OrtencaAl)

Read a transcript of this episode on FT.com

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