ANCHOR (OFF-CAMERA) ENGLISH SAYING:

First of all, let's look at the IPO market overall. Your data shows, year-to-date, $15.8 billion has been raised from initial public offerings, best we've seen since 2000, a continuation from last year. But when does that pace start to slow off?

KATHLEEN SMITH, PRINCIPAL, RENAISSANCE CAPITAL, (ENGLISH) SAYING:

We are going to start to see the pace slowing now because the returns, which have been absolutely phenomenal until February this year, are starting to pedal back and that will cause a slowdown in this very big wall of issuance that we have ahead.

ANCHOR (OFF-CAMERA) ENGLISH SAYING:

Why do you think we started to see the performance falter?

KATHLEEN SMITH, PRINCIPAL, RENAISSANCE CAPITAL, (ENGLISH) SAYING:

Well, I think a number of things. Investors, I think, are starting to get a little uncomfortable with the froth basically that's been in the market and I'd target, in this case, biotechs and cloud-based companies that are not earning money. But I also think it is hitting sectors broadly because the market has been on a very strong rise. So, investors are starting to pull back and get a little bit conservative. They feel valuations are high. It's affected the already-trading companies and those are the companies that are used for valuation comps for newly-public companies, so that, we think, is what is causing the eventual slowdown in issuance.

ANCHOR (OFF-CAMERA) ENGLISH SAYING:

Another statistic that you pulled together: 27% of the IPOs this year are pricing below range. We saw that with La Quinta. We've also seen IPOs like Ally not perform as well perhaps as some would like. How does this compare to prior years and certainly prior heights in the IPO market on that pricing under range number?

KATHLEEN SMITH, PRINCIPAL, RENAISSANCE CAPITAL, (ENGLISH) SAYING:

That pricing under range, which is growing now, it's a little bit above. We usually have maybe 25% of IPOs may get that kind of- in general, that kind of pricing cutback. But I think the point- and we see that rising. The point here is to look at the IPO market from an investor standpoint because I think that, most of the time, it's looked at as an issuer saying, okay, how many can we get done. And basically investors are looking to earn money in IPOs not just on the first day but in post-IPO trading. And we started to see that decline at the end of February. And as soon as that started to happen, it required some rethinking of IPO pricing which is the process of going on currently. It means that even though, for example La Quinta was priced below the range, that's what it took to get the post-IPO trading to be positive. So that's a good thing for investors when we're saying the- really, you're looking at the sell side and the buy side- and the sellers, the issuers, are not in the driver's seat right now; it's the investors, the buy side, that are calling the shots in terms of pricing.