We continue our special series on The Great Reception, a year that’s welcoming all investors. This week we look at the capital markets: funds flow, asset behavior and deal quality. With each passing day, the light at the end of the COVID tunnel grows brighter. That newfound optimism has put upward pressure on interest rates. […]
What have you missed most over the past few months? Well, if you said “Grape-Nuts” we feel your pain. Our beloved cereal has gone missing from supermarket shelves across the US. First produced in 1897 Grape-Nuts accompanied Sir Admiral Byrd to Antarctica and Sir Edmund Hillary to Mount Everest. But don’t worry. They’ll be back. […]
We conclude our special series, “Five Biggest Private Capital Surprises of 2020,” with: Surprise #5: The M&A Big Bang Last July published a white paper on COVID-19 and M&A Activity. It was called “COVID-19 and M&A Activity”. Besides logistical challenges, there were worries about second and third infection waves. “We’re expecting a light second half,” […]
We continue our special series with the fourth of our “Five Biggest Private Capital Surprises of 2020:” Surprise #4: Which Industries Mattered? For experienced credit managers, diversity is a key investing principle. The question coming into last March’s downturn was, have we made the right decisions on industries to lean into and out of? Generalists […]
We continue our special series with the third of our “Five Biggest Private Capital Surprises of 2020:” Surprise #3: Where Are the Distressed Loans? Last April the CEO of a large asset manager said the volume of potential distressed credit investments could be $1 trillion. COVID, he said, presented “a massive opportunity to deploy capital […]
We continue our special series with the second of our “Five Biggest Private Capital Surprises of 2020:” Surprise #2: Non-Correlated Trends – Infections, Markets, and the Economy At their lowest moments in the Global Financial Crisis and the Global Biological Crisis, financial markets swooned in synch as investors found no safe havens. Bad news sunk […]
Because last year was so unique, to really capture its themes adequately we’re kick off our special series: “The Five Biggest Private Capital Surprises of 2020.” Surprise #1: The Market Snap-Back Hard to remember now, but by last March 23rd the Dow plunged almost 11,000 points in less than six weeks to 18,592. Today it […]
December was lost in a fog of masks and Netflix bingeing. But one item that penetrated our consciousness was a superb credit webinar, courtesy Lincoln International. Their data, gleaned from over 1600 portfolio companies, are a strong proxy for private credit behavior: For example, sector performance underlined valuation advantages for less COVID-impacted industries such as […]
As we wrap up our special SPAC series, let’s take a look at the performance of these vehicles over time. According to research firm Renaissance Capital, of the 200-plus SPACs launched since 2015, 107 have completed mergers and gone public. Shares in those issuers averaged a loss of 14%. Compare that to an average regular-way […]
Workers unwrapping the Christmas tree at Rockefeller Center last month found a little present. The 75-foot high Norway spruce from Oneanta, NY was sheltering what appeared to be a baby owl. The stowaway turned out to be an adult northern sawhet that hid in the branches until it was discovered. No word whether “Rocky” planned […]