Follow-On Offerings Hit By Heightened Volatility

In a market characterised by rising risk aversion and increased volatility, it is not just IPOs which are suffering, follow-on offerings are taking a hit too. And with volatility set to remain elevated, CFW sees the market for secondary-offerings remaining in choppy waters for some time. Key to this view is the recent spike in the Chicago Board Options Exchange Volatility Index (VIX), which has seen the leading indicator of volatility more than double during the last month.

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