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Blank-Check Company Deals Driven by Speculation, Chanos Says

  • Short-seller contends SPACs don’t perform well historically
  • Chanos says companies are putting aside metrics like earnings
Jim Chanos
Jim ChanosPhotographer: Misha Friedman/Bloomberg

The surge in blank-check company deals is a sign of unfettered speculation and investors may see lackluster returns from these offerings, legendary short-seller Jim Chanos said.

“We are going to blow through the records of 1999 and 2000 in terms of new issuance,” Chanos said at Grant’s Interest Rate Observer’s fall conference on Tuesday. “We are now seeing speculation in all its glory come back.”