Red Hot SPAC Market Cools After Accounting Warning

The market for special-purpose acquisition companies, or SPACs, was all the rage over the last year, with exponential asset growth in just a few months plus the involvement of celebrities like R&B singer Ciara and former Yankees slugger Alex Rodriguez. Then, last month, the Securities and Exchange Commission threw a sudden damper on it: new accounting guidance that forced many SPACs to issue financial restatements, which continue to appear just about daily. Did the SPAC market just hit a wall? Or was it more like a speed bump? On today's episode of our podcast, Talking Tax, Bloomberg Tax's Nicola White speaks with Demetrios Frangiskatos of BDO about why the SPAC market got so hot, what the SEC's guidance really did to it, and where it might be heading in the near future.