OfficeHours

AUGUST 25, 2023

The growth of private credit can be traced back to the Great Financial Crisis of 2008-2009. In particular, new guidelines from the FDIC and Federal Reserve (among other governmental agencies) made it more difficult for banks to underwrite financings that resulted in debt-to-EBITDA ratios in excess of 6.0x.

Private Equity

Cooley M&A

SEPTEMBER 25, 2020

The decisions from the court on those preliminary matters, as well as the arguments raised by legal counsel, offer some valuable lessons for sellers considering sale transactions that require debt financing, and may motivate sellers to re-evaluate certain provisions and remedies that have become customary in those transactions.

Debt

Global Banking & Finance

MARCH 27, 2024

UK homeowners and businesses resilient to high interest rates, BoE says LONDON, March 27 (Reuters) – British mortgage holders and businesses are generally coping well with high interest rates and problem debt levels are well below those seen after the 2008 financial crisis, the Bank of England said on Wednesday.

Business

Global Banking & Finance

MAY 13, 2024

In the Market: Financiers fret over ‘leverage on leverage’ in private credit By Paritosh Bansal (Reuters) -To some elite financiers who gathered in Los Angeles for the Milken Institute conference, a debt binge in private markets is reminding them of the go-go days of risk-taking before the 2008 financial crisis.

Debt

Shearman & Sterling

SEPTEMBER 1, 2013

Since 2008, the alternative asset market has seen a broad convergence of previously distinct asset classes and strategies, such as private equity, hedge funds, debt and claims trading, etc., This newsletter is devoted to discussing legal issues facing alternative asset managers and funds. into a single class - alternative assets.

Asset Management

Mergers and Inquisitions

MARCH 13, 2023

history and the largest bank to collapse since 2008. Why bank regulations , including those passed after the 2008 financial crisis, failed to prevent this. Remember that, normally, a bank issues loans and then finds the liabilities (deposits, debt, etc.) It’s the second-biggest bank failure in U.S. Who deserves the blame.

Bank

Peak Frameworks

SEPTEMBER 19, 2023

5 Cs in Detail , Character Character pertains to an individual's or a company's historical record when it comes to managing debt and fulfilling obligations. Debt-to-income ratio: One common metric used to determine capacity. It is the proportion of a borrower's monthly debt payments to their monthly gross income.

Debt

Peak Frameworks

SEPTEMBER 11, 2023

For instance, a company laden with debt could transfer some of it to an SPV, thereby reducing its debt-to-equity ratio. A key example of this was the securitization of subprime mortgages in the 2000s, which contributed to the 2008 financial crisis. Risks and Criticisms of SPVs While SPVs have benefits, they also come with risks.

IT

Mergers and Inquisitions

MARCH 13, 2024

Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. Debt financing is much more common, and the GE firm is often the first institutional investor. Many of these firms use debt to fund deals, and they complete bolt-on acquisitions for portfolio companies.

Private Equity

The Harvard Law School Forum

JUNE 27, 2023

bank failure since the 2008 financial crisis; JPMorgan Chase later agreed to buy the majority of its assets. [2] government’s battle over the debt ceiling, though resolved in early June, destabilized markets in May when it appeared lawmakers might not come to a resolution. [5] 3] [4] The U.S. 3] [4] The U.S.

Financial Institution

Mergers and Inquisitions

NOVEMBER 22, 2023

Bulge Bracket Bank Definition: The “bulge brackets” are the largest global banks that operate in all regions and offer all services – M&A, equity, debt, and others – to clients; they work on the biggest deals (usually $1 billion+) and have divisions for sales & trading , equity research , wealth management , corporate banking , and more.

Bulge Bracket

Peak Frameworks

OCTOBER 17, 2023

Commercial paper is a form of unsecured short-term debt. Because of its short duration, commercial paper allows issuers to manage immediate liquidity needs without locking into long-term debt. Absence of Covenants Unlike some longer-term debt instruments, commercial papers usually don’t come with restrictive covenants.

Debt

Sica Fletcher

JULY 1, 2020

Deals with debt multiples higher than 6X EBITDA rose to greater than 75% of the total, again the highest in history, and in dramatic contrast to the years following the 2008 financial crisis, when the number gradually increased from nearly zero to about 60% by 2017. Multiples have also increased dramatically.

Private Equity

The M&A Lawyer

SEPTEMBER 23, 2015

29 2008) , and. Hexion focused its arguments on Huntsman’s repeated failure to achieve its forecasts as well as an increase in Huntsman’s net debt as compared to its projected decrease and the underperformance of two of Huntsman’s operating divisions. However, three Delaware cases stand out as particularly important.

M&A

Peak Frameworks

OCTOBER 30, 2023

Following the 2008 financial crisis, regulations have intensified , pushing banks to allocate more resources to ensure compliance. Dodd-Frank Wall Street Reform and Consumer Protection Act: Introduced after the 2008 crisis, this U.S. The subprime mortgage crisis that led to the 2008 financial crash is a prime example.

Bank

Peak Frameworks

MAY 24, 2023

During the 2008 financial crisis , put options (which give the holder the right to sell at a specific price) on mortgage-backed securities and major stock indexes increased in value dramatically as the market plummeted. Options allow investors to hedge their positions or speculate on the direction of asset prices with limited downside risk.

Private Equity

Peak Frameworks

SEPTEMBER 19, 2023

A classic example of T-Bills in action occurred during the European Sovereign Debt Crisis. Investors, wary of the uncertainties in European debt markets, turned to U.S. Debt Ceiling Crisis , T-Bills experienced an unusual yield spike as investors momentarily questioned U.S. Represented by the full faith and credit of the U.S.

IT

Peak Frameworks

SEPTEMBER 19, 2023

For example, the 2008 financial crisis can be examined through the lens of Natural Law. For instance, during the European Debt Crisis , it was crucial for policymakers to approach solutions rationally, analyzing data and projections rather than succumbing to panic. Rationality: Making decisions based on reason and not emotion.

Business

Peak Frameworks

OCTOBER 19, 2023

For instance, if we consider the European Central Bank's policy decisions after the 2008 financial crisis, one can see the practical application of the Fisher Equation. In an environment of low inflation or deflation, the nominal interest rate can be significantly lower than the real interest rate, as demonstrated in this analysis.

Finance

The Harvard Law School Forum

JUNE 27, 2023

bank failure since the 2008 financial crisis; JPMorgan Chase later agreed to buy the majority of its assets. [2] government’s battle over the debt ceiling, though resolved in early June, destabilized markets in May when it appeared lawmakers might not come to a resolution. [5] 3] [4] The U.S. 3] [4] The U.S.

Financial Institution

Peak Frameworks

SEPTEMBER 18, 2023

This trust is what makes modern crises like the fall of Lehman Brothers in 2008 so globally impactful, as they threatened the stability of a currency now integral to global trade. Gold-USD Standard Currencies were convertible to gold , but only the US dollar was directly pegged to gold at $35 an ounce.

Finance

Wall Street Mojo

JANUARY 17, 2024

For example, a highly aggressive monetary policy, external shocks, and substantial debt. If businesses and households have high debt levels, an increase in interest rates can result in bankruptcies and widespread defaults. There are various causes of this type of downturn. This aggravates the slowdown in the economy.

Economics

Peak Frameworks

SEPTEMBER 12, 2023

Take, for instance, the aftermath of the 2008 financial crisis. Following the European sovereign debt crisis, many European countries increased their savings rates, leading to a gradual rise in capital stock and eventually economic growth. For instance, it helps explain why countries like the U.S.

Economics

Razorpay

MAY 11, 2023

The concept of LLP was introduced in 2008 through the Limited Liability Partnership(LLP) Act. • This means that the personal assets of the partners are protected from any business debts or legal liabilities incurred by the LLP. Basically, an unsettled debt. But they are unable to pay their loan due to a few bad months.

Accountant

Wall Street Mojo

JANUARY 17, 2024

The broker-dealer network facilitates such decentralized trading of derivatives, equity and debt instruments. read more by opting for fixed interest rates Fixed Interest Rates A fixed interest rate is a constant rate of interest levied on debts like loans, mortgages, or bonds. Swap is a great tool to manage your debt effectively.

Financial Institution

How2Exit

MAY 23, 2023

Then, in 2008, the world experienced a massive financial crisis and Wall Street experienced tremendous dislocation. Castle Placement specializes in raising private equity and debt capital for clients. In 2000, Richard's partner left and he left for Bear Stearns.

Capital

Francine Way

MAY 16, 2017

How many of us know people who lost their homes in the 2008 mortgage crisis? We have spent the last few posts looking at debt and it can be useful to a corporate borrower; as well as negative impacts debt can pose to the capital structure. There are many different kinds of debt providers: banks, bondholders, hedge funds, etc.

Debt

Peak Frameworks

OCTOBER 17, 2023

For example, in 2010, during the European debt crisis, many critical meetings among EU leaders were held. For instance, during the 2008 financial crisis , clarity in documentation would have been essential in decision-making meetings. Objectives or purpose of the meeting: A brief on what was intended to be achieved.

Finance

FineMark

APRIL 13, 2023

history and the largest since Washington Mutual collapsed in 2008 — during the Global Financial Crisis — at $307 billion in assets. This scenario will have a disproportionate, negative effect on both commercial real estate borrowers and small-to-medium-sized businesses that aren’t large enough to access the public debt markets.

Bank

Cooley M&A

MAY 11, 2020

After the 2007 – 2008 financial crisis, financing conditions quickly fell out of favor when a number of prominent deals fell through due to financing failures, and over the past decade pure financing outs have been exceedingly rare.

Mergers and Acquisitions

Sica Fletcher

APRIL 16, 2020

To give you some perspective on how draconian these numbers are, during the Great Recession of 2008/2009, GDP dropped by 4.3%; during the Great Depression, GDP dropped by about 30%. economy during and after the , , Great Recession of 2008-09. Similar arguments were made in 2008 and 2009. The answer is the Federal Reserve.

Insurance

The TRADE

APRIL 30, 2024

Over the past two decades, several critical financial market regulations have been implemented globally, particularly in response to the 2008 Global Financial Crisis (GFC). The years following 2008’s GFC experienced continued financial regulatory reform.

Financial Institution

Cooley M&A

MARCH 17, 2020

During the 2008 financial crisis, it was reported that the number of proxy fights increased by 14% year over year and the number of unfriendly transactions nearly doubled (unfriendly transactions representing 23% of public deals announced in 2008, as compared to 12.4% of deals in 2007).

Negotiation

Mergers and Inquisitions

MAY 28, 2025

Its an expansive term that includes areas such as direct lending and mezzanine: [Credit: Marquette Associates ] This image doesnt include everything; areas like special situations debt (similar to distressed debt ) and private collateralized loan obligations (CLOs) should also be there. A: See our EBITDA to FCF tutorial.

Capital Market

Sun Acquisitions

MAY 20, 2025

vs. China trade war, the Greek debt crisis, the Chinese stock market losing 1/3rd of its value in a month and much more. 9/11, Hurricane Katrina, Enron, several global wars, and the 2008 Global Recession, kicked off by a collapse in the housing market triggered by subprime mortgages and credit default swaps. The decade before that?

Business

Mergers and Inquisitions

NOVEMBER 6, 2024

elections reviews” for 16 years, with the first one right after Obama’s win in 2008. trillion in FY 23) goes to mandatory programs, such as Medicare, Social Security, and interest on the $35 trillion in national debt ( source ). In each election cycle, I try to approach the results from an objective perspective.

Government