From 2019 into 2021 specific SPACs were among the top investments, looking to bring exciting, elusive growth companies to market and offering their sponsors handsomely in the process. 

Floral Pattern
Floral Pattern

Unfortunately for several SPACs, investor performance after finding a deal was lousy.

Irrespective of whether a SPAC liquidates or participates on a deal or votes to extend, you must have a choice to redeem and receive the value held in trust.

However, recent movements in the interest rates can build opportunities. 

Lined Circle

It means that the SPAC’s current value may increase beyond the present $10 value as they look for deals and get interest while they wait. 

One current unexpected risk of the SPAC is the recent buyback tax which is a segment of the Inflation Reduction Act.

The buyback tax can dent returns for people looking at SPACs as a stable income type investment. 

As much increased speculative investments, the warrants of SPAC could be interesting too. 

Gray Frame Corner

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These typically provide the option to buy shares at a fixed rate after a deal happens, capturing a lot of potential upside if everything go really well. 

Therefore, the boom of SPAC in the previous years is clearly over.