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Jul13
Cowen Group, Inc. Debut
j0342066.jpgThe NYT notes that Boutique investment banking firm, Cowen Group, Inc., now a former affiliate of French conglomerate Societe General completed its IPO today, priced at $16 at the low end of the range and dropping about 1% to $15.88 in its first day of trading.

Others have been asking about this modestly disappointing offering is what it portends for other boutique firms hoping to complete IPOs this year.

Frankly, I'm more interested in what it suggests for the firms not planning such transactions.  Investment banking is traditionally a volatile business, booming in a good economy with a strong stock market and sinking in recession years. 
Rising interest rates and falling stock prices don't auger well for future investment banking earnings.  In the middle market space, we are seeing a bit of a rush to get deals done while the getting is good.  For now, the market is fine, but pressures are building.

What are you seeing?  What do you think about the Cowen IPO?





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