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Joined: Tue September 24, 2013 5:56 pm Posts: 47149 Location: In the oatmeal aisle wearing a Shellac shirt
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
Not going to lie, I have no idea what any of this means.
Joined: Tue September 24, 2013 5:56 pm Posts: 47149 Location: In the oatmeal aisle wearing a Shellac shirt
Monkey_Driven wrote:
tragabigzanda wrote:
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
Not going to lie, I have no idea what any of this means.
Joined: Sun September 15, 2013 5:50 am Posts: 22385
tragabigzanda wrote:
Monkey_Driven wrote:
tragabigzanda wrote:
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
Not going to lie, I have no idea what any of this means.
it's an Albany expression
well I'm from Utica and have never heard of pursuing LBOs at this high level of interest rates
_________________ All posts by this account, even those referencing real things, are entirely fictional and are for entertainment purposes only; i.e. very low-quality entertainment. These may contain coarse language and due to their content should not be viewed by anyone
Joined: Tue September 24, 2013 5:56 pm Posts: 47149 Location: In the oatmeal aisle wearing a Shellac shirt
96583UP wrote:
tragabigzanda wrote:
Monkey_Driven wrote:
tragabigzanda wrote:
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
Not going to lie, I have no idea what any of this means.
it's an Albany expression
well I'm from Utica and have never heard of pursuing LBOs at this high level of interest rates
Lol
Also yeah that’s an interesting insight. Lots of coverage of how distressed assets are so hot right now, but the interest rates are something else. Maybe sovereign wealth funds can help with bolt-ons and break-offs and be happy with not losing money?
Joined: Sat January 05, 2013 1:57 pm Posts: 32497 Location: Where everybody knows your name
tragabigzanda wrote:
96583UP wrote:
tragabigzanda wrote:
Monkey_Driven wrote:
tragabigzanda wrote:
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
Not going to lie, I have no idea what any of this means.
it's an Albany expression
well I'm from Utica and have never heard of pursuing LBOs at this high level of interest rates
Lol
Also yeah that’s an interesting insight. Lots of coverage of how distressed assets are so hot right now, but the interest rates are something else. Maybe sovereign wealth funds can help with bolt-ons and break-offs and be happy with not losing money?
Explain it so we can understand it, Dave Ramsey
_________________ Let me tell you, Homer Simpson is cock of nothing! - C. Montgomery Burns
Joined: Sat January 05, 2013 7:30 am Posts: 8213 Location: nothing
wease wrote:
tragabigzanda wrote:
96583UP wrote:
tragabigzanda wrote:
Monkey_Driven wrote:
tragabigzanda wrote:
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
Not going to lie, I have no idea what any of this means.
it's an Albany expression
well I'm from Utica and have never heard of pursuing LBOs at this high level of interest rates
Lol
Also yeah that’s an interesting insight. Lots of coverage of how distressed assets are so hot right now, but the interest rates are something else. Maybe sovereign wealth funds can help with bolt-ons and break-offs and be happy with not losing money?
Explain it so we can understand it, Dave Ramsey
He's pulling your leg
_________________ crazy strong wind on the ride back had to mega pump the quads
Joined: Tue September 24, 2013 5:56 pm Posts: 47149 Location: In the oatmeal aisle wearing a Shellac shirt
wease wrote:
tragabigzanda wrote:
96583UP wrote:
tragabigzanda wrote:
Monkey_Driven wrote:
tragabigzanda wrote:
T-bonds going up. Big rush on distressed assets. I guess if you're a big player, you de-risk with the treasury and try to get in on some leveraged buyouts? Not really my thing but that seems to be the conventional wisdom?
Not going to lie, I have no idea what any of this means.
it's an Albany expression
well I'm from Utica and have never heard of pursuing LBOs at this high level of interest rates
Lol
Also yeah that’s an interesting insight. Lots of coverage of how distressed assets are so hot right now, but the interest rates are something else. Maybe sovereign wealth funds can help with bolt-ons and break-offs and be happy with not losing money?
Explain it so we can understand it, Dave Ramsey
Still learning, and glad to be corrected on anything I’m wrong about…
LBO = leveraged buyout. Let’s say a private equity group wants to buy a distressed (struggling) business using leverage (debt) for $100M. They’ll put up $10M of their own cash, then borrow $90M from banks, bond raises, or elsewhere using the acquisition target’s own assets as collateral on the debt. So if the company fails, then can liquidate the company and sell its assets to pay off the debt.
A popular narrative right now is that there are more distressed assets available than normal because Covid relied funds extended a lifeline to a lot of business that would have otherwise gone under. Those funds have dried up, so there’s a backlog of companies that are in rough shape and are ripe for the plucking.
Bolt-ons and carve-outs are slang for (respectively) when PE adds a smaller company or product to a portfolio entity, or takes one out and turns it into its own company, to increase the return of their portfolio investment.
The Albany joke about interest rates was suggesting that despite there being a lot of distressed assets out there, interest rates are so high as to make LBOs an unattractive option for the stereotypical investor in PE funds. I suggested that sovereign wealth funds might put more cash than usual into these sorts of strategies because they’re not really looking for high risk/high reward scenarios; they’re governed more like pension plans, looking for low risk and stable returns over long horizons.
Joined: Sun September 15, 2013 5:50 am Posts: 22385
Meanwhile Ethereum is up 75% year-to-date! Good thing we got rid of all those crypto investments, eh? all good, when I see you guys buying back in again I will know it’s time to short the market
_________________ All posts by this account, even those referencing real things, are entirely fictional and are for entertainment purposes only; i.e. very low-quality entertainment. These may contain coarse language and due to their content should not be viewed by anyone
Joined: Sun September 15, 2013 5:50 am Posts: 22385
you are doing the prudent thing investing in FDIC-insured cash equivalents
stay away from the fun stuff that eventually goes to zero
_________________ All posts by this account, even those referencing real things, are entirely fictional and are for entertainment purposes only; i.e. very low-quality entertainment. These may contain coarse language and due to their content should not be viewed by anyone
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