Known as blank cheque companies, SPACs are pools of cash on the hunt for firms to buy
From house prices to tech stocks to digital art, the COVID-19 pandemic has had a counterintuitive impact on the prices of a variety of assets, driving many to record highs at a time when the economy is still reeling.
Now, some experts are warning about a niche type of investment vehicle that’s veering into bubble territory and in danger of bursting.
The investment in question is known as a SPAC, a special purpose acquisition company. While SPACs have been around for more than a decade, 2020 has proven to be a record year for them as investors explore more and more arcane fields in search of stratospheric returns.