Last year proved to be a record-breaking year for initial public offerings (IPOs). According to data from IPO watchers at Renaissance Capital, IPOs in the United States raised more than $142 billion in proceeds, amid a flood of government stimulus, soaring valuations, and low-interest rates.
However, the interest rate environment will reverse soon, given Fed’s hawkish stance to deal with the inflationary pressure. According to Bank of America Corp. (BAC) economists, the Federal Reserve is expected to execute seven quarter percentage point rate increases in 2022. This could lead to a continued market retracement.
