High Finance
Instead of pursuing bold acquisitions, he is now locked in pedestrian squabbles with cable operators and union leaders who refuse to be swayed, let alone charmed.
Dylan Byers • The Iger Bunker
“Getting a yield of less than 1% to lock up your money for up to 100 years might not sound like a great deal,” Bloomberg led its story about the com- ing of the Austria 0.85s, in June 2020, “yet the rush for safety means Austria’s century bonds [i.e., the 2.1s] have nearly doubled in value so far. That’s why the nation’s sale of new debt that matur... See more
“In the decade before 2022,” the Oaktree authors lead off, “many sponsor- backed companies financed leveraged buyouts by borrowing heavily in the broadly syndicated loan and private cred- it markets—and the majority of this debt had floating rates.” Naturally, the 500 basis-point jump in reference rates spells higher borrowing costs for the unhedge... See more
Assume, again, a one percentage- point drop in the bonds’ respective yields. In that case, the U.S. Treasury 1.875s of 2051 would rally by 24%, to 74.30 from 60.15, and the on-the-run 30-year Treasury, the 4.125s of 2053, by 19%, to 116.69 from 97.91.
By positive convexity, we mean asymmetric returns. Positive convexity is the quality by which a bond delivers bigger price gains in response to falling yields than it suffers price de- clines in response to rising yields.
In a consumer survey last year, the Federal Reserve found that 37% of Americans lacked the savings to cover an unantici- pated $400 expense.
What is perhaps most debilitating for Iger, however, is the simple fact that the rules of the game have changed, and the ambitions have diminished. The glory days of growth and conquest that defined his first tenure have given way to a brutal battle for survival, one in which Iger may be forced to deconstruct the very empire he helped build, starti... See more
Dylan Byers • The Iger Bunker
Let’s assume for a moment, though, that between the two sales, Paramount walks away with $4.5 billion in cash. Paramount has $13.5 billion of net debt, as of March 31. If Bakish decided to use the $4.5 billion in cash from the sales of S&S and BET to pay down that debt—always a good use of cash—Paramount would still have $9 billion in debt. On ... See more
Are You There, Aryeh? It’s Me, Shari…
it seems as though these are all brands that could be fucking incredible but are being manage-managed rather than brand-managed
"The Fed's own data," observes the August 29 edition of "Early Morning with Dave" (David A. Rosenberg, of course), "show that bank-wide credit card delinquency rates have gone from 1.84% a year ago to 2.43% in the first quarter of 2023 and now to 2.77% in the second quarter. This is also before we have even seen the onset of higher unemployment--is... See more