Friday, 29 August 2014
Last updated 58 sec ago
Aug 7 2013 | 10:05am ET
Amidst fears that interest rates may soon rise, private equity-owned companies are taking on record amounts of debt to pay those owners.
Some $47.4 billion in new loans and bonds have been sold by companies to pay dividends to their p.e. owners, according to S&P Capital IQ LCD, a 62% increase from the same period last year. The borrowing spree puts p.e.-owned companies on track to easily break the record they set last year, with $64.2 billion in debt taken on to pay dividends.
Some 60% of all bonds sold by p.e.-owned companies last month were used to pay dividends, up from the 14% average for the year. And many of the loans are of the riskier variety, with low credit ratings and low interest rates, The Wall Street Journal reports.
Private equity firms are racing to take advantage of those low rates, after a bond-market slump in May and June.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...