According to Alan Felder, managing director of UBS's OneBank Partnership, activity looks like it could be robust going into 2022. Although gradual increases to interest rates shouldn't affect M&A activity too much, interest rates that rise rapidly in response to inflation can discourage companies from M&A activity until inflation subsides. Felder cites low interest rates, record levels of dry powder (cash available to spend on deals), and possible changes to capital gains taxes as drivers for strong M&A markets.