Wednesday, July 25, 2007

Credit and private equity

Maybe I am wrong already - some evidence here that the Chrysler and Boots deals may be facing indigestion and that banks will be less keen to providing financing deals in the future now that they are less certain about unloading this in some sort of package to others.

The big uncertainty remains Asian and energy-producing central banks. Will then step up to purchase these assets at higher yields?

1 comment:

Rob Hayward said...

Thanks - Even if the hedge fund strategy is going to be enhanced by higher interest rates, the cutback in lending should tend to reduce the scope for leverage and the return on capital.