Taxpayers hit with fewer audits

NEW YORK (CNNMoney)

The agency audited 1.4 million people last year, down 5% from 2012 and the lowest number of audits conducted since 2008, according to IRS statistics released Friday.

The IRS blamed its shrinking budget for the drop-off, saying "an ongoing decline in appropriate funding presented challenges."

Related: 10 tax audit red flags

Since 2010, the agency's budget has been reduced by almost $1 billion and around 10,000 employees have been cut. Under the 2014 budget, the IRS will receive $11.3 billion -- nearly $2 billion less than the White House had requested for the agency and a $526 million drop from 2013.

Meanwhile, government spending cuts last year forced the IRS to furlough workers without pay for three days, making it even harder for the agency to keep up with its workload.

To cut costs, the IRS has been conducting more audits by mail than in person. Last year, more than three-quarters of examinations were correspondence audits, and the rest were field audits -- meaning they were conducted at an IRS office or a taxpayer's home.

Related: Quiz - 7 surprising 2014 tax facts

And while the overall number of audits was low, at around 1% of all taxpayers, there are still certain groups that aren't getting a break.

One of those groups is the rich: About 9% of taxpayers with income between $1 million and $5 million were audited last year, and that rate rose to 16% for those with income between $5 million and $10 million. For the nation's top earners, with income over $10 million, the audit rate was 24%.

Business owners are also more likely to be audited, and so are taxpayers who claim a home office deduction or the Earned Income Tax Credit. Reporting -- or failing to report -- a foreign bank account could also lead to additional scrutiny, as the IRS continues to crackdown on people hiding offshore income.

Related: Tax season unleashes cyberscams

In addition to being unable to conduct as many audits, the agency's taxpayer assistance has been deteriorating, the National Treasury Employees Union said in a statement Friday.

"We are seeing the results of these reductions in staffing, particularly in customer service, all across the country," NTEU president Colleen Kelley said. "Both taxpayers and employees are frustrated by the lengthy lines at Taxpayer Assistance Centers and the long telephone hold times for those who call the IRS with a question."

First Published: March 21, 2014: 4:58 PM ET

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Are Netflix users ripping off the rest of us?

Reed Hastings says Netflix is "reluctantly" paying for faster connections to broadband networks.

NEW YORK (CNNMoney)

Hastings sounded off Thursday on the likes of Verizon (VZ, Fortune 500), Comcast (CMCSA, Fortune 500) and others, accusing them of "sacrific[ing] the interests of their own customers" in demanding fees to ensure quick delivery of content from Netflix (NFLX) and other data-intensive services.

The dispute flared up earlier this year following news that Netflix streaming speeds for customers of major ISPs were slowing, as these firms attempted to extract a fee from Netflix in exchange for connecting directly to their networks and resolving the issue.

Netflix announced an agreement with Comcast last month under which it will indeed pay for a connection, and has been in talks with Verizon as well.

Hastings said his company was engaging in these talks "reluctantly." He accused the ISPs of abusing their market power and short-changing customers.

Related: New chapter begins in net neutrality fight

But the ISPs tell a very different story. They point to the fact that Netflix generates a massive amount of data consumption -- around a third of traffic online during peak hours -- while sticking them with the ever-increasing delivery costs.

The National Cable and Telecommunications Association says just one percent of broadband subscribers -- primarily heavy streaming-video users -- consume nearly 40% of bandwidth going into homes.

Other big tech companies, including Microsoft (MSFT, Fortune 500), Google (GOOG, Fortune 500) and Facebook (FB, Fortune 500), already have paid-connection deals with big ISPs. Comcast vice president David Cohen said in response to Hastings that these arrangements "have been an essential part of the growth of the Internet for two decades."

Dan Rayburn, an industry analyst at Frost & Sullivan, says it's not clear that the ISPs are to blame for customers' lagging Netflix speeds. In a blog post Friday, he noted that Netflix has the option of rerouting the traffic it sends to ISPs when congestion occurs at one connection point.

The heart of the problem is that high-speed Internet networks are extremely expensive to deploy. There aren't many companies with the resources to do it, and there isn't enough competition in most regions to push ISPs to quickly upgrade their infrastructure.

Paid-connection deals like the one between Comcast and Netflix are part of the way the broadband industry wants to address this issue. But Hastings says this cost-sharing doesn't make sense if the ISPs aren't also willing to share subscription revenue.

"When an ISP sells a consumer a 10 or 50 megabits-per-second Internet package, the consumer should get that rate, no matter where the data is coming from," Hastings wrote in his blog post.

Related: Court strikes down net neutrality rules

ISPs have accused Netflix of "dumping" data onto their networks, a characterization that Hastings rejected.

"Netflix isn't 'dumping' data; it's satisfying requests made by ISP customers who pay a lot of money for high speed Internet," Hastings wrote. "If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future."

Going forward, broadband providers would like to move to a tiered pricing structure for customers depending on how much data they consume, similar to those offered by mobile carriers.

"[I]t's unfair to ask lighter users to subsidize super-user activity," the NCTA says.

But part of that formula will likely involve letting content providers subsidize consumer data consumption that goes toward their services. AT&T announced this kind of "sponsored data" program earlier this year for the mobile Web. The worry with this system is that it favors established companies that can pay up for speedy delivery of their content, putting smaller firms at a disadvantage and potentially stifling innovation.

"On a tiered Internet controlled by the phone and cable companies, only their own content and services -- or those offered by corporate partners that pony up enough 'protection money' -- will enjoy life in the fast lane," the advocacy group Free Press says.

First Published: March 21, 2014: 5:34 PM ET

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Obamacare: Some may have more time to finish applications

The administration may let some people finish their Obamacare applications after March 31

NEW YORK (CNNMoney)

Administration officials have repeatedly said they are not extending the open enrollment deadline. But they are now considering giving those who start applying for health insurance by month's end additional time if they run into technical trouble during the application process. A similar grace period was put in place in December to allow applicants to sign up in time to obtain coverage by Jan 1.

"As was the case for the December deadline, we're going to want to make sure that people who are already in line can finish their enrollment," Press Secretary Jay Carney said Friday.

Back in December, some people who missed the deadline on the 23rd were given an extra day if they had started their applications but couldn't pick a plan because of technical issues. The federal exchange saw record-high traffic on Dec. 23.

Eligible applicants were directed to the federal exchange call center for instructions on how to obtain coverage in the new year. The 14 states running their own exchanges instituted their own extensions, some beyond the 24th.

"We are preparing for a surge in enrollment, and if consumers are in line on the 31st and can't finish, we won't shut the door on them," said Dept of Health and Human Services spokeswoman Joanne Peters.

"To be clear, if you don't have health insurance and do not start to sign up by the deadline, you can't get coverage again until next year," she said.

Administration officials have said they expect a similar last-minute crush to exchange websites as the March 31 deadline approaches.

Some states running their own exchanges are already giving applicants more leeway. The Nevada Health Link board decided Thursday to create a special enrollment period for people who are not able to complete the process by month's end. Those who apply online, by phone or through paper forms but run into technical issues have until May 30 to finish signing up.

Americans who don't have insurance this year will face a penalty of $95, or 1% of income, whichever is greater.

More than 5 million people have picked plans, with more than 800,000 signing up in the first half of March alone. The administration and consumer advocates are doing a final outreach push before the final deadline.

-- Additional reporting by CNN Senior White House correspondent Jim Acosta

First Published: March 21, 2014: 4:37 PM ET

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U.S. sanctions on Russia begin to bite

Russian billionaire Gennady Timchenko's business empire is under pressure as the U.S. steps up sanctions over Crimea.

LONDON (CNNMoney)

Moscow's MICEX index fell more than 2% -- taking its losses for the year to 14%. The ruble was steady, after dipping early in the day, but has still lost about 10% since the start of the year.

The U.S. added more senior Russian officials and a bank to its list of targets Thursday, including Yuri Kovalchuk, described by U.S. officials as President Vladimir Putin's personal financier.

And President Obama warned Moscow the U.S. would target key sectors of the economy if Russia escalates the crisis in Ukraine.

Russian leaders earlier this week laughed off Western sanctions, which remain largely focused on disrupting the travel plans and freezing the personal assets of about 40 officials, some from Ukraine.

But the targeting of powerful figures close to Putin, and a company -- Bank Rossiya -- shows that the U.S. at least is ready to take more serious measures.

Europe will add a dozen more names to its list of sanction targets Friday, a source told CNN, but won't include companies, reflecting divisions among the European Union's 28 members and fears about the impact of a trade war on the region's fragile economic recovery.

Europe has much more to lose than the U.S. in terms of trade, investment and financial exposure to Russia if economic sanctions are imposed.

Still, Russia would come off worst, and its faltering $2 trillion economy could stall this year, analysts say.

Standard & Poor's said Thursday it could downgrade Russia's sovereign credit rating, and Fitch did the same Friday, warning growth could fall way below 1% this year as a consequence of the crisis.

"Since US and EU banks and investors may well be reluctant to lend to Russia under the current circumstances, the economy may slow further and the private sector may require official support," it said.

Related: Western banks lend billions to Russia

U.S. moves to punish Russia for what the West views as a violation of Ukrainian sovereignty are starting to make life uncomfortable for some of Putin's allies.

Billionaire Gennady Timchenko sold his 44% stake in Swiss-based energy trading company Gunvor on Wednesday, just 24 hours before he landed on the sanctions list.

Timchenko's Volga Group also owns stakes in natural gas producer Novatek -- whose shares fell 7% -- and in Bank Rossiya, which U.S. officials have said will be "frozen out of the dollar."

Bank Rossiya is Russia's 17th biggest bank, with $10 billion in assets, according to a senior U.S. administration official. It has substantial interests in oil and gas.

Visa (V, Fortune 500) and MasterCard (MA, Fortune 500) had stopped providing services to the bank's clients, it said in a statement. Russia's central bank was reported by local media to have pledged to prop up Bank Rossiya.

Other wealthy Russians targeted by the latest round of sanctions include Arkady and Boris Rotenberg, who the U.S. says profited heavily from contracts for the Sochi Olympics.

Arkady Rotenberg owns a big chunk of Mostotrest, Russia's biggest bridge builder, through his investment firm Marc O'Polo Investments. Mostotrest shares were down 4% in Moscow.

The brothers own 76% of SMP Bank, another financial institution cut off by Visa and MasterCard Friday.

First Published: March 21, 2014: 8:54 AM ET

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Time Warner Cable CEO to get $80 million golden parachute

Time Warner Cable CEO could get a $79.9 million golden parachute if the company is sold to Comcast.

NEW YORK (CNNMoney)

In a filing about the deal Thursday, Comcast disclosed the estimated value of the Time Warner Cable parachutes for its top officers.

Marcus's annual compensation package under the contract he signed last year would have been $6.5 million in salary and cash bonus, and $9.5 million in stock grants. So the $79.9 million package comes out to nearly five year's worth of minimum compensation. But about half of the value of that parachute is due to the immediate vesting of restricted stock and options he had received in the past when he held other positions with the company. He became CEO on Jan. 1 after serving as its president.

Arthur Minson, chief financial officer, will get a $27.1 million parachute, while Michael LaJoie, the chief technology officer, gets $16.3 million, while Philip Meeks, the chief operating officer, gets. $11.7 million.

Of course the announced $45 billion deal to combine the nation's two largest cable companies is far from certain. It still requires the approval of regulators, who are certain to hear objections from consumer groups arguing the deal is bad for customers.

Related: Comcast to buy Time Warner Cable for $45 billion

Executive employment contracts typically contain golden parachutes which promise big payout if there is a "change in control" of the company.

The idea is that shareholders do not want executives to block a possible deal that would be good for shareholders due to concerns about how it will affect them personally. The company also does not want top executives or leave the company while merger negotiations are underway.

But the size of some recent parachutes has raised questions.

Former Heinz CEO William Johnson became eligible for a $212.6 million golden parachute after the company was purchased last year by a Warren Buffett's Berkshire Hathaway (BRKA, Fortune 500) and private equity firm 3G Capital.

Related: Departing Novartis chairman forgoes $78M parachute

But sometimes the golden parachute can pay off even when the executive is fired for problems with his or her performance.

Henrique de Castro, who was essentially fired as chief operating officer of Yahoo (YHOO, Fortune 500) earlier this year due to poor performance, left with a golden parachute estimated to be more than $60 million despite being at the company for only 15 months.

First Published: March 21, 2014: 9:31 AM ET

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S&P 500 hits record high

NEW YORK (CNNMoney)

The Dow Jones industrial average gained more than 100 points and the Nasdaq also moved higher.

Stocks could be volatile Friday as it's also the day when four futures and options contracts expire -- known as quadruple witching.

"That's the main driver of the day," said Peter Cardillo, chief market economist at Rockwell Global Capital. He noted that the only other major market-driving news was that 29 of the 30 big banks passed the Federal Reserve's stress test. Regional bank Zions (ZION) was the only one that did not and its shares were down 2% in early trading.

It's been a busy week. The Federal Reserve tweaked the guidance for future policy changes. There have also been rising tensions between the West and Russia and continued concerns about slowing growth in China.

But for the most part, stocks kept pushing higher. As it stands now, the major U.S. indexes look set to close out the week with a healthy gain.

Related: Fear & Greed Index shows greed again

Markets were rattled Wednesday after Fed chair Janet Yellen suggested that the central bank could begin hiking interest rates sooner than expected. But stocks have climbed every other day this week.

The latest reading on the CNNMoney Fear & Greed index shows investors are getting greedy once more.

But the mood isn't quite so perky in Russia, where the stock market and ruble are under pressure after the U.S. announced sanctions against more high-ranking Russian individuals and a bank. Western nations are trying to put pressure on Russia after it annexed Crimea, a region in southern Ukraine.

The impact on global markets from the sanctions "will be real but not drastic," according to analysts at political risk consultancy Eurasia Group.

The analysts said capital flight from Russia "will likely be extremely high" in the first quarter and the sanctions will "send a chill through the Russian banking sector." But the Americans and Europeans are unlikely to impose on Moscow the kind of crippling sanctions they used against Iran, according to Eurasia.

Related: Risks in focus as China's economy slows

There's little U.S. economic or corporate news on the docket Friday. Before the bell, Tiffany (TIF) reported full-year earnings and sales that fell short of forecasts.

Shares of Darden Restaurants (DRI, Fortune 500), the parent company of Red Lobster, officially released its latest quarterly results. Darden had warned earlier this month that profits would be down sharply, but investors still pushed the stock lower.

Nike (NKE, Fortune 500) shares slid after the company said earnings could be squeezed over the next few quarters.

Symantec (SYMC, Fortune 500)shares plunged after the company fired its CEO.

Related: CNNMoney's Tech30

European markets were all rising in morning trading. Asian markets mostly closed with gains. China's yuan fell to a one-year low against the dollar earlier this week as the nation's central bank allows the currency to trade more freely. Investors have also been worried about bankruptcies in China after the nation's first corporate bond default last month.

First Published: March 21, 2014: 9:52 AM ET

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Subprime mortgages making a comeback

NEW YORK (CNNMoney)

Once synonymous with toxic, adjustable-rate mortgages -- like the "exploding ARMs" that led many homeowners to lose their homes to foreclosure during the housing bust -- subprime mortgages are once again being offered to borrowers who pose a higher credit risk, typically those with credit scores that fall below 640.

But this time around, the loans are much more costly. During the housing bubble, lenders were handing out subprime loans with cheap teaser rates and little or no down payments. Now, lenders are charging interest rates of as high as 8% to 10% and requiring borrowers to make down payments of as much as 25%-35%.

Related: Buy vs rent: What you'll pay in the 10 biggest cities

The premium price is worth it for some borrowers who are trying to build or repair their credit, according to Bill Dallas from Skyline Financial, of Calabasas, Calif. Skyline started offering subprime loans a few months ago under its NewLeaf Lending division.

Among his firm's subprime mortgage customers: young, first-time homebuyers and former homeowners whose credit was ruined in the housing bust.

"They're just Americans who want to buy homes but can't," said Dallas, who used to run First Franklin, a subprime lender that went bust in the mortgage meltdown.

Most of these borrowers have nowhere else to turn. Fannie Mae and Freddie Mac, which back 80% of all U.S. home loans, won't back loans issued to subprime borrowers.

Related: Home prices: Check your local forecast

Only the Federal Housing Administration continues to support low-credit score borrowers in the wake of the housing bust. But it has hiked fees and premiums.

To help protect borrowers, the Consumer Financial Protection Bureau requires strong consumer protections. The loans cannot carry interest rates that increase after default, or prepayment penalties, for example. And lenders must provide these borrowers with homeownership counseling from a representative approved by the U.S. Department of Housing and Urban Development.

In addition to the small lenders who are issuing subprime loans, Wells Fargo recently lowered the minimum credit score it requires of borrowers to get FHA loans.

Wells Fargo is now approving applicants who have scores of between 600 and 640 for FHA loans, which remains well within FHA's guidelines, according to spokesman Tom Goyda.

Related: 10 Best Places to Retire

"It will open up access to credit for many lower income families, including first-time homebuyers," said Goyda.

And Dallas points out that these borrowers don't necessarily have to pay those high interest rates for the life of the loan. Once they demonstrate they can repay their loans regularly, their credit scores should improve and they should be able to refinance into a lower-rate loan.

First Published: March 21, 2014: 7:29 AM ET

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How to tame your workers' wandering eye

Kevin Menzie keeps his employees happy by taking them on "creative experiences," this one at the top of Colorado's Quandry.

NEW YORK (CNNMoney)

Tempted by the prospect of landing a better gig, 85% of the workforce is looking for a job or interested in talking with recruiters, according to a survey released Tuesday by LinkedIn. That even includes people who are "satisfied" with their jobs.

If you don't want to lose talented employees, here's how to keep them happy and engaged.

Give them a voice

As CEO of design firm Slice of Lime, Kevin Menzie knows competition for his employees is fierce. So Menzie ensures his 15 employees feel like they are the company, instituting monthly "retrospectives" to discuss what's working and what's not.

That can be tough at times, like when Menzie had to deny their request for gym memberships. But he left the topic open for future consideration. "I think it's riskier not to listen," he says.

Related: Why Big Ass Fans pays 30% above national average

Kathryn Minshew takes a similar approach as CEO of The Muse, a career website in New York. She promises transparency and answers her 15 employees' questions on fundraising, finances and hiring plans. This puts any frustration out in the open and boosts loyalty.

"Not every decision is made by consensus or democracy, but it leads to creativity and people being extremely invested in what they do," she says. Her firm has lost just one employee since 2012.

Check in often and say thanks

The traditional yearly review won't cut it in 2014, says Allyson Willoughby, a vice president at Glassdoor.com.

To ensure regular feedback, New York-based Quirky.com uses automated software called 15Five for weekly check-ins. All 189 workers get questions about what's going well, where they're stuck or how to improve their jobs. As a result, managers have time to think through challenges before one-on-one meetings, which can be spent brainstorming solutions, says Rochelle DiRe, a Quirky vice president.

"Plus, our CEO knows exactly what is going on with everyone and can shout out to people who are doing a good job," she says.

Related: Orange buttons boost online sales

That kind of recognition goes a long way. Jeremy Bloom, CEO of cloud software firm Integrate, sends thank you notes and bottles of Dom Perignon for a job well done. "Thoughtfulness," says Bloom, "is a key ingredient to building loyalty."

Offer professional -- and personal -- development

Lack of career growth is a big reason people leave their jobs, says Beth N. Carvin, CEO of exit interview firm Nobscot Corp. She's seeing more companies start mentoring programs to prevent that.

That includes Luggagefree, a New York-based luggage delivery service. President Jeff Boyd wanted a cost-effective way to boost personal development for his 15 employees. He settled on Everwise, which acts as a Match.com for mentors and protégés. For $1,500 per person, Boyd provide outside mentors who offer fresh ideas for career growth.

"My hope is that they'll be self-empowered and feel better about their colleagues, about our clients and about Luggagefree," he says.

Related: Could teaching employees to code be key to success?

Meanwhile, IdeaPaint, which makes dry erase paint for walls, wants to stimulate its 30 employees by turning its new downtown Boston office into a community center. Just this month, it started hosting speakers and roundtable discussions before and after work. Open to anyone, they've already boosted company morale.

Give them a break

Perks like gym memberships and free bagels are great, but sometimes just a break from the office can build morale and boost loyalty.

One of the most popular perks at Quirky is the week-long "company-wide black out" every quarter (which is on top of unlimited vacation time).

"Knowing you get this break gives you a sense that you're working towards something together," DeRe says.

Slice of Lime owner Menzie treats his employees to ski vacations and "creative experiences," like a recent trip to Universal Studios. People can propose their own "outties" on an online list.

Menzie also lets employees spend 20% of work hours on personal interests, and he keeps an open Amazon account for employees.

The perks, he says, cost far less than replacing an employee.

"You get that money back because they're staying, they're happy and they're doing great work," he says.

First Published: March 21, 2014: 7:09 AM ET

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Passengers' families could collect millions

NEW YORK (CNNMoney)

After two emotional weeks of searching, the prospect looms that the Boeing 777 carrying their loved ones won't soon turn up -- or may never be found.

Not knowing what happened to the 239 people aboard Flight 370 complicates the claims process and presents "some significant hurdles," said Dan Rose, a partner at the firm Kreindler & Kreindler who has represented passenger claims. But it in no way absolves the airline's financial responsibilities to the passengers' families.

"From a legal point of view, it's not an unprecedented situation," he said.

Under an international treaty known as the Montreal Convention, the airline must pay relatives of each deceased passenger an initial sum of around $150,000 to $175,000.

Relatives of victims can also sue for further damages -- unless the airline can prove that it took all necessary measures to prevent a crash or any other incident that prevented passengers from arriving safely.

Related: Crowdsourcing site hunts for plane

"It's going to be extremely difficult for Malaysia Airlines to plead absence of negligence" when the plane is missing, said Brian Havel, a law professor and director of the International Aviation Law Institute at DePaul University. "The negligence may have even begun in the process of accepting stolen passports."

Liability could also stretch beyond the airline to the plane's manufacturer, Boeing, if a mechanical flaw is ruled the cause. But that would be a difficult case to prove if the plane is not recovered.

Monica Kelly, an attorney at Ribbeck Law Chartered who plans to file suit against Malaysia Airlines and Boeing, believes that based on her experience, families could receive between $400,000 and $3 million in damages. However, it could take two years before they see the money, she said.

And a lot depends on where the lawsuits are filed. Plaintiffs tend to be awarded much larger sums in U.S. courts than in other countries, said Mike Danko, an aviation lawyer with Danko Meredith who estimates some awards could be as large as $6 million to $8 million.

Uncertainty about the passengers' fate could slow the legal process. But if months go by with no sign of the passengers, most countries will allow judges to rule that a passenger is presumed dead, allowing claims to move forward, including life insurance and other other end-of-life matters.

Any lawsuits will likely unfold in several countries since people of 14 different nationalities were on board the flight. U.S. attorneys are already on the ground in Beijing, where many of the families are awaiting news of their loved ones in a hotel.

But most claims will likely be settled out of court, Havel said.

Related: Why no phone calls from Flight 370?

Many of Malaysia Airlines' expenses will be covered by the maze of insurance policies that cover a plane and its passengers. Coverage averages between $2 billion and $2.5 billion per aircraft, including about $10 million per passenger, Havel said.

The first claims for the missing airliner itself have already been paid. Insurer Allianz Global Corporate & Specialty said Wednesday it and other firms "have made initial payments" of an unspecified amount on so-called hull and liability policies that are part of "our contractual obligations where an aircraft is reported as missing."

An eventual payout from the airline, however, won't answer the many questions or assuage the grief. Families of the passengers gathered in Kuala Lumpur and Beijing -- the flight's departure and intended arrival cities -- upset that, in their view, authorities were withholding information.

"They just kept brushing us off, saying keep waiting and waiting for information," said one woman as family members protested at a Kuala Lumpur hotel. "I don't know when we are going to wait 'til. It's already 12 days."

-- CNN's Aliza Kassim in Atlanta and Pauline Chiou in Kuala Lumpur contributed to this report

First Published: March 21, 2014: 7:34 AM ET

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European IPOs boom as bull market runs

LONDON (CNNMoney)

Initial public offerings on exchanges in the U.K., the Netherlands, Denmark and Spain have raised $12.4 billion so far this year, easily surpassing the $9.2 billion raised in the United States, according to data from Dealogic.

The London Stock Exchange has seen a parade of offerings, raising 10 times as much as during the same period last year, according to Thomson Reuters (TRI) data.

Other European exchanges such as Euronext in Paris have also hosted big IPOs, unlike 2013 when new issues were few and far between.

As the bull market in equities continues into its fifth year, and the eurozone crisis fades, companies see this as an ideal time to raise money and investors are happy to snap up new shares.

"There had been a lack of new names and companies over the last five years [in Europe]," said Matt Toole, head of Thomson Reuters' deal intelligence unit. "Investors are looking for those new names to put in their portfolio and companies are lining up to sell shares."

Related: Yee-haw! Riding the mechanical bull market

The IPO rush is also being fueled by private equity firms looking to cash out of their investments.

"The whole [private equity] market is talking about the IPO window," said Ernst & Young's European IPO expert Martin Steinbach. "If you have an exit window, you take the chance."

Attractive valuations in Europe may be playing a part too. London's FTSE 350 index is currently trading at 14 times earnings, compared with 16.5 times for the S&P 500.

Related: Royal Mail delivers... for investors

A global IPO boom got underway in late 2013 as investors became increasingly confident in the economic outlook and central banks continued to pump cheap money into markets. Over $40 billion has been raised globally so far this year, twice as much as at the same point in 2013.

That trend continues for now as investors expect markets to remain firm, despite geopolitical tensions, slower growth in China and prospects of tighter monetary policy in the U.S. and U.K.

Internet, e-commerce and retail companies are leading the charge in London. U.K.-based online food delivery service Just Eat said this week it planned to issue shares. The firm could be worth as much as $1.5 billion, according to reports.

"There's more risk appetite. Investors are looking for growth, and that's represented through technology [firms]," said Ernst & Young's Steinbach.

Last year's successful Twitter (TWTR) IPO in the U.S. helped boost the pipeline of tech offerings. Dealogic data shows 26 tech firms have raised nearly $6 billion in IPOs around the world this year, with more to come.

Candy Crush maker King goes public next week in New York, and China's Alibaba has said it also plans to list in the U.S.

Related: China's Alibaba picks U.S. for IPO

There's been a crush of new IPOs from mainland China after Beijing lifted a year-long ban in late 2013. Dealogic data shows 62 Chinese companies have raised roughly $7.3 billion on global exchanges since the start of the year.

First Published: March 20, 2014: 9:30 AM ET

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