Weakness in Facebook Stock Adds to Pause in I.P.O.'s | In the days since the highly anticipated opening of Facebook turned into a flop, the effect has become worse as would-be issuers have taken a second look at what they are getting into.
But many would-be issuers were thrown out of the queue by widening credit spreads and investor reluctance.
Somebody has to pay for those hours, and that somebody would be the bond issuers.
It should be no surprise that a big insurer like A.I.G. would be a major issuer of credit default swaps.
Under the rule proposed by the S.E.C., issuers would be required to disclose any such developments, including changes in the issuer's credit rating, delinquencies in payment of principal or interest, and unscheduled draws on debt service reserves.
Issuers would be wise to seize the moment.
And because diaspora populations often build strong webs of churches, community groups and newspapers, bond issuers would be able to tap into a ready-made marketing network.
Credit card issuers would be helped by another rate cut by the Federal Reserve before the end of the year, the rating service said.
But a lawyer involved in the case cautioned against concluding that the issuers would be eager to help the investors' lawyers make their case against the brokerage firms.
Based on first-quarter trends, the 2001 default ratio, a measure of corporate financial weakness that divides defaults by the number of corporate debt issuers, would be the worst since the 1991 recession year.
Mr. Siegel, who was hired in March to lead an overhaul of the carrier, said that members of its frequent-flier club would continue to accrue and use miles and that consumer marketing agreements with other companies, like credit card issuers, would be honored.
