Sovereign wealth funds and a rise in corporate defaults are likely to drive M&A activity over the next 12 months, according to new research published by Mergermarket.

The latest Global M&A and Debt Market Outlook survey of US and European executives and advisers found 64% of respondents predicting an increase in corporate defaults. Seventy percent expected such a rise in the US, with 50% anticipating an increase in Europe over the same period.