First Bear Stearns cancels the IPO of its Everquest fund, now comes news that the Carlyle Group will delay and scale back its expectations for its offering (coming next week) of a fund that will invest residential mortgage backed securities and other bonds. The fund will price its shares at $19 each in Amsterdam. That's lower than the $20 to $22 it previously sought. That takes down the proceeds to the $300 million range, not the $400 million range. So it's fair to say that the subprime-inspired mess is roiling waters on Wall Street still. True, this isn't an outright cancellation--and true, the fund will not invest in subprime-backed bond--but sentiment is negative. You shouldn't be surprised if demand is a bit weak. You can expect more corporate bond issuers to scale back their expectations as well.

For more:
- here's an AP article