Credit Market Turmoil Could Sour Outlook for U.S. PE-Backed IPOs
- Rising interest rates, market volatility take their toll
- Investors lose interest in highly leveraged companies' IPOs
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You can add one more factor to the reasons why U.S. private equity-backed initial public offerings have had a shabby few months: the convulsing junk bond market.
Languishing commodities prices and turmoil in emerging markets had already prompted a selloff in high-yield credit, even before the markets could fully react to the impact of the Federal Reserve raising interest rates in mid-December.