Private equity operators start to do deals in an active new issue market for debt securities and equities.
In other words, you have to agree that the new-issue market has more than its share of hazards.
The same factors are at work in the new-issue market, where, in late June, clearing yields narrowed and flex activity shifted sharply in favor of issuers.
In the new-issue market, the story was similar.
FORBES: March 2012, US Leveraged Loan Market Trends and Analysis
The pattern was also clear in the new-issue market where single B clearing yields gapped out 13 bps versus those of BB loans, which remain in high demand not just from institutional loan accounts but banks and cross-over investors.
FORBES: Leveraged loans return 0.31% in November; YTD return is 8.8%
In other words, even putting aside the possibility that the Net sector on Wall Street is a bubble waiting to pop (a matter about which there is considerable debate), you have to agree that the new-issue market has more than its share of investing hazards.
In particular, the revival of the new-issue CLO market buoyed demand for seasoned paper.
Certainly, the forward calendar implies that new-issue volume will continue apace once the market gets back to business.
Supply sagged in August even though issuers took advantage of the strong market tone to keep the new-issue spigot open deep into the month.
Indeed finance officials plan to issue a new bond (which would reopen the market for emerging economies) to lengthen the maturity of the public debt.
Along with a better-than-expected macro environment in August, surplus inflows to the loan market lifted secondary prices and pressured new-issue clearing yields lower.
Longer term the big issue is about developing new taxis that can compete in the market.
The median performance data are even more revealing: For all 4, 567 stocks including Cisco and the other nine best-performing issues the median new issue is down 31% and has a relative-to-market score of just 40.
As Chris Nagy of TD Ameritrade explains in the new issue of the AAII Journal, a stop order turns into a market order once triggered if more specific instructions are not given.
Market rumours in New York that Sumitomo Bank was in trouble forced it to issue a categorical denial.
This issue faces both the capital market buyside and the strategic Pharma buyer eager to find new clinical stage innovation.
FORBES: Preclinical Biotech Structured Deals: Reflections on 2013's Solid Start
Paulson outlined a series of new rules and regulations that federal and state officials are expected to issue to reform many of the financial market practices that led to the serious problems in the mortgage and credit markets.
"The fundamental issue remains the withdrawal of many lenders from the mortgage market over the past year and the reluctance of new participants to play a meaningful role in delivering finance to potential homebuyers, " said Rics chief economist Simon Rubinsohn.
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