A soaring equity market usually signals big financings, but this fall the large follow-on offerings just have not materialized.
With the S&P/TSX up about 8 per cent since the start of September, you might think issuers would want to tap investors' thirst for equity returns in such a low interest rate environment. But the big deals just have not come to market.
That isn't to say there haven't been a few, like Crescent Point Energy Corp.'s $375-million bought deal, but there have only been a handful. Most deals have been in line deals from the past two days, which include Endeavour Silver Corp.'s $50-million bought offering, led by CIBC World Markets, and Altus Group Income Fund's $50-million bought deal of converts, co-led by BMO Nesbitt Burns and National Bank Financial.
Maybe companies are scared because this fall's bigger IPOs haven't fared all that well. Or maybe they simply have lots of cash piled up after hoarding it during the recession.