What's Leverage Got To Do With It? A Response

It was unavoidable, we suppose, that a retired senior bank credit officer would be compelled to respond to our previous column. High debt-to-ebitda leverage, we asserted, was misleading and should be viewed in context of other considerations. Though preferring anonymity, this self-described “credit dinosaur” has been known to us for decades as an experienced participant

What’s Leverage Got To Do With It?

A persistent misunderstanding in leveraged lending is using leverage as the sole metric for market frothiness. Drawing such conclusions is like judging an episode of Keeping Up with the Kardashians by the first two minutes. That takes at least three minutes. It’s tempting, of course, to be carried away by the headlines. Both Thomson Reuters

Are We Back to 2007? (Last of a series)

Predictions are tough, especially about the future. And after Thursday’s Dow tumble, it’s hard to dismiss outright doomsday forecasts that a credit apocalypse is coming soon. For leveraged lending bubble busters, their canaries in the capital coal mine are leveraged statistics. Are we past 2007’s high-water mark? To be sure, we’re hearing our share of