Monday, 20 October 2014
Last updated 5 hours ago
Nov 30 2006 | 9:54am ET
Their debt levels are skyrocketing and their valuations are high, but that won’t stop private equity firms from buying U.S. information technology companies, according to Fitch Ratings’ 2007 credit and operating trends outlook for the sector.
According to Fitch, tech leveraged buyouts will continue next year, even though “the list of attractive technology targets remains short,” with buyers attracted by maturing growth rates, consistent free cash flow and conservative capital structures. Also, Fitch notes, p.e. firms will have to put their money somewhere.
“LBO speculation and activity will be driven by strong private equity fund inflows, a favorable credit environment and relatively stable demand for IT,” Fitch said in a release. It warned, however, that the technology cycle could be peaking, and the sector offers fewer obvious opportunities for cost reduction.
Thanks in part to expected LBO activity, the IT sector’s debt level is set to reach historic levels. Fitch estimates that it will rise by 40% to $140 billion in 2007, driven primarily by refinancings.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...