Why investors need to know what a "control premium" is during market stress

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RSM Australia has conducted its fourth control premium study, covering the period between 2005 and 2020.

Nadine Marke, Partner at RSM, clarifies what a control premium is, and how it moves with economic cycles, and more crucially, especially during periods of market stress.

RSM Australia has conducted its fourth control premium study, covering the period between 2005 and 2020. Nadine Marke, Partner at RSM, clarifies what a control premium is, and how it moves with economic cycles, and more crucially, especially during periods of market stress. For example, the control premium doubled during the market dislocation of 2020 - why? Cashed up companies and low interest rates are facilitators of the current boom. Nadine highlights three sectors that have been in focus over the past year, led by mining. Looking ahead for investors - what will the new normal look like, and how long will it take to get there?

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