IPO market is fizzling. Here's why that's good news

An Albertsons store in Laguna Niguel, California
Scott Mlyn | CNBC

The initial public offering market is fizzling as 2015 comes to a close. LoanDepot became the latest company to pull its IPO, citing the dreaded "market conditions."

There is nothing wrong with the consumer loan business LoanDepot represents, but there was some debate about its valuation. The company is essentially a mortgage lender, but it trades at multiples closer to peer-to-peer lending platforms. Why was LoanDepot?

But don't kid yourself. LoanDepot was a victim of the fragile market and an IPO after-market that has lost investors money for most of this year.

And now those IPO investors are demanding lower prices to buy. LoanDepot was hoping to float 30 million shares at $16 to $18, but talk on desks yesterday was it could price at $12 and lower.

Rather than take the price, management walked.

And others have, too. Albertsons dropped its IPO, and it's unlikely Nieman Marcus or Univision — two high-profile names that have filed but not announced terms — will debut now.