Reuters - Video

EDITION: U.S. | U.K. | IN

Breakingviews

Breakingviews: IP-uh-O

Friday, June 28, 2013 - 03:29

June 28 - Jeffrey Goldfarb and Rob Cyran discuss how rising interest rates led to price cuts in a rash of stock market debuts, including CDW and HD Supply, and whether the IPO party is over.

▲ Hide Transcript

View Transcript

Ben Bernanke dumped -- massive bucket of cold water on not the IPO market this week regardless what it is trying to say it's that great -- bit spooked investors. Two big issues HD supply -- CDW had to cut the price of their of their. I debuts at their whole bunch of other ones that they're wound up cutting as well what what. Two things I mean for -- just the basic point you know investors are -- -- -- their. And warm distrustful of the government securities and -- that they think. Well I don't in their risk for you rate is going up so it a hundred basis points yes there's an even -- -- that means they're really risky stuff like IPOs are gonna ever gonna sell off. And -- -- I mean because you know HD supply is cool wholesaler we've seen some good news in the housing market. CDW seems like they're fairly normal visitors really what it really basic business is the problem is that got a huge amount of debt on both these companies you know they're both brought out many people that -- company's satellite data on the and they took that they've paid a little bit the depth that they'd try to protect him investors and investors things well on that a bit too much debt. Because these companies got trouble in 2008 both these coming -- the profiles were. About support scared of these kinds of profiled earlier at me -- arrested a couple weeks cut -- scared on right now and now they suddenly they are it's it's it's the whole flight from risk. All over the place. And it isn't just debt I mean there are there were several other kind of the other ones were not necessarily. Deadly look at different kind of bad for me it's bad rescue program it's more like it'll make any money. It's -- -- now everything -- -- -- which which wasn't a problem again that we can -- and possibly investors things well -- making money. Never actually reading the perspectives of the yeah exactly and and it's it's not a coincidence perhaps that a company that's a Biotech for pets. I actually cut the -- -- certainly onion what. It has been the kind of -- activist leaders saying okay we're not so sure about this quality you know -- technology that's I guess on the -- so we do see one issue that actually held up pretty well yeah it was. The new company you can count. Basic business not much not much -- three times David making money they make money they're expanding so investors said okay you know. I'm not can take the bad about it and I can't take companies you meant that that'll buy a new book. I mean if there -- serves that this will continue mean how much. If there is a sobriety I guess as we put it kind of a punch -- being taken away by the Fed I mean it's not completely gone but it's starting to -- If you. Will this kind of look at you'd expect for the rest of the year and I would expect that just because there are a lot of what is it -- yet is that here and then -- this either. Heavily indebted companies private equity or lost it comes to venture capitalists want to get rid of and I assume that the rates -- -- in the end it will mean they won't but if if rates continue to rise -- these days till. There's going to be kind of a flight risk and and both of these words come as well -- emerging markets also one other coated with a sort of were also -- it right -- there's a big prison in cement company that was gonna go public in the exit polls that offering and the other thing is also in in China there is a company's. Known -- that owns hotels in mainland China. And they are gonna cut the price of their listing by substantial well. All right we will keep an eye on the IPO markets of course it will be back with more breaking news next week.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: IP-uh-O

Friday, June 28, 2013 - 03:29

Top News »

Retirement »

Back to work- in retirement Back to work- in retirement

Wed, Oct 15, 2014 - (2:09)

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

Mon, Oct 20, 2014 - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)