"The market for initial public offerings is facing its worst drought in decades, and history gives few clues as to when the market will turn around.Later it quotes FinanceProfessors Reena Aggarwal and Dr. IPO himself Jay Ritter.
The IPO market has typically reopened fairly soon after a slumping stock market begins rising again. But this time there will need to be an acceptance of sharply lower prices by issuers for there to be any kind of snap-back when the current bear market ends."
"There's not much to be learned from previous downturns as far as this IPO market is concerned," said Reena Aggarwal, a professor of finance at Georgetown University in Washington. "This time around, the credit markets have come to a complete halt.
"If triple-A paper can't be financed, if banks aren't making intraday loans to each other, you can't even begin to think about the IPO market."