E&Y Sees Initial Offerings Surging in the U.S. - Capital Markets - CFO.com

Even with all the turmoil in the financial markets E&Y Sees Initial Offerings Surging in the U.S. - Capital Markets - CFO.com.  I have been extremely impressed with Nouriel Roubini's predictions about the capital markets, and I still think he is right.  Mr. Roubini feels that financial markets and financial institutions are under severe stress.

"The E&Y report, however, points out that although subprime jitters slowed the new issue market after the U.S. liquidity crunch started in the second quarter of 2007, the third-quarter interest rate cut put the domestic IPO market back on track toward record issuance levels in the fourth quarter. Although the U.S. economy continues to slow, it says, the Federal Reserve is expected to continue easing interest rates, with recaps at financial institutions maintaining their pace from the first quarter."

"E&Y notes, however, that despite the recent uptrend, the U.S. IPO market is losing global market share. From 2004 through 2007, it says, the volume of IPOs worldwide more than doubled, from $130 billion to about $280 billion. And the U.S. has been a minor participant in that growth. Most of the growth has come out of Europe, Middle East, and Africa (EMEA), largely Eastern Europe, and the Middle East, and to a significant degree Asia."