Pinpointing the exact trigger for the selloff is not easy. While many cited a spike in Treasury yields as the culprit, others pointed to a flood of share offerings that have overwhelmed the market. The Renaissance IPO ETF (IPO), tracking recent initial offerings, slipped for five days, the longest decline since July.
“The amount of paper that has come over the last couple of weeks has been extremely large,” said Sandoz at Barclays. “So in terms of what’s kind of turning the tide, there’s just been a little bit of indigestion and, effectively, supply that’s coming to the market. When you start to see a few of these things not working and people are long, that kind of cascades across that space.”
This article was provided by Bloomberg News.