The Impact of Debt
oaktreecapital.com
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The Impact of Debt
Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street
amazon.com
For investors, nirvana is a profitable, growing enterprise that is certain to endure. Financial leverage does not destroy companies, but it does create vulnerability. Look for businesses that respect the matching principles: Match borrowings with safe (not risky) assets, and match long-term assets with long-term (not short-term) debt. Businesses th
... See moreJoel Tillinghast • Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing (Columbia Business School Publishing)
Meanwhile, interest rates have reached a 20-year high, posing a direct threat to private equity’s debt-heavy business model. In response, many private-equity funds have migrated toward even riskier forms of backroom financing. Many of these involve taking on even more debt on the assumption that market conditions will soon improve enough to restore
... See moreRogé Karma • The Secretive Industry Devouring the U.S. Economy
One of the major contributing factors of the recession of 2008–9 was the use of enormous amounts of Leverage by investment banks. It wasn’t uncommon for banks to Leverage their investments by a factor of thirty or forty. Millions (or billions) of dollars were made or lost when the value of a particular stock went up or down by a single percentage p
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