Knobias ClipReport
Submitted from Knobias ClipReport
Friday’s action saw the market fall amid worries of rising global interest rates, hedge fund worries regarding their subprime exposure, and rising crude oil prices. The volatility was a bit disconcerting considering the volume.
Much of the worries over the credit market were due to the collapse of Bear Stearns hedge funds that heavily invested in subprime mortgages.
But the main focus of the day was put on the Blackstone Group (BX) IPO. The private equity firm’s offering raised some $4.1B making it one of the richest in US history.
The IPO was noted as being over subscribed by 10 times the amount offered. With so many institutions wanting the shares, one would think the offering would gain throughout the day. Though the shares did have a large spike during the morning hours, shares fell off throughout the rest of the day.
