No companies are expected to go public in the United States by the end of the year, according to Dealogic. It’s a trend that has been especially troubling to the venture capital industry, making it hard for them to cash in on their investments.
Before Grand Canyon, the last public offering on a United States exchange was 104 days ago, when Rackspace Hosting, a San Antonio Web hosting company, took the plunge. Its stock has fallen more than 50 percent since then, despite being priced at the bottom of its expected range, as Grand Canyon was.
Since Rackspace hit the market, 29 initial public offerings have been withdrawn, according to data from Thomson Reuters. With the global markets continuing to take a beating, more companies, both in the United States and abroad, may scrap their plans to ring the opening bell.
The number of U.S. workers filing new claims for unemployment benefits soared again last week to its highest level in 16 years.
Christopher Cox's SEC eliminated the Uptick Rule on July 6th, 2007. Since the rule was done away with, the S&P 500 is down 51%.
If you're looking for signs of stabilization in the credit markets, the high yield market is not a good place to start. Based on data from Merrill Lynch, high yield bonds are yielding nearly 1,800 basis points more than comparable Treasuries. In the last month alone, spreads have risen by more than 200 basis points, and since bottoming in the Summer of 2007 at 241 basis points, they are up 645%. To put this in perspective, with the 10-Year US Treasury now yielding 3.4%, a high-yield borrower would need to pay roughly 21.4% per year to take out a ten-year loan.
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