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[jawndissedi]

NYTimes: Debt Market Is Squeezing Private Equity

"If conditions do not improve, private equity firms and their bankers may face an even uglier situation. Some $235 billion in loans are waiting to be sold, nearly all for leveraged buyouts, according to Standard & Poor’s Leveraged Commentary and Data."

Is that a lot?

[ogm]

Yep, thats it for LBO's , CMO's , CDO's, IPO's and all other O's. Banks are sitting on 200 bil bridge loans, can't sell the debt. Spreads skyrocketing, IPO's go sour, Not looking good. I mean not Only BX IPO itself was a flop. The Orbitz IPO, the company they bought out only a year ago and tried to take public again, that was a flop too. Meaning that all of these LBO companies have leveraged up the wazoo and now can't even sell these companies to the public. And investors refusing to buy any more LBO debt. Liquidity is waving goodbye. Another 1 bil hedgehog imploded in Australia, also was heavily in junk debt. Not going to help the bullish cause. The only hope for Brokers at this point is the growing number of Chineese housewifes with margin day trading accounts. But that may be at risk too. Brokers are toast. Good luck in the next business cycle. This cycle is over.

Edited by ogm, 21 July 2007 - 03:07 PM.