Beware of 'frothy' SPACs, London Stock Exchange warns investors

"There is clearly some froth in the US market for SPACs," London Stock Exchange Chief Executive David Schwimmer told reporters

The "frothy" US market for special purpose acquisition vehicles (SPACs) could see investors coming off "poorly", London Stock Exchange Chief Executive David Schwimmer warned on Friday after proposals for Britain to loosen SPAC listing rules.
 

Listings of the so-called "blank cheque" companies which use the proceeds to take private firms public through a reverse takeover, have rocketed in New York and exchanges elsewhere are keen to jump on the bandwagon. That has raised concerns about inflated valuations.
 

"There is clearly some froth in the US market for SPACs," Schwimmer told reporters.
 

"Some of that could end poorly for some of