The late Charlie Munger on wild horses, vets and the private equity industry (1-minute ‘must listen’ if you have never heard it before)! Click above. The trouble is that these days the PE industry is suffering from a shortage in terms of those days when the horse is well-behaved!
LA fire trucks, healthcare gouging, vet bills, HVAC local monopolies, and car wash epidemics are becoming increasingly visible to the median voter.
Blackstone (daily candles) versus UST 10-Year yields. Rate would appear not to matter. For now.
Why is that? The world’s endowments and pension funds cannot stop neither do they seemingly intend to stop pouring assets into their funds. For now.
“Mimics CLOs” is also a phrase that those with memories of the GFC do not want to hear too close to bedtime.
Repricings and non-cash interest payments (PIK Toggle) are spiking. ‘Adjusted’ EBITDAs do not cover cash coupon payments! What is more, LMEs are only creating temporary fixes for portfolio companies.
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