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Collateralized Debt Obligation (CDO)

Wall Street Mojo

What is a Collateralized Debt Obligation? Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work? CDOs provide investors with a diversified portfolio of debt instruments across different risk levels. read more , etc.

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How the Growth of Private Credit is Impacting Private Equity

OfficeHours

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.

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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

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.

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Pandemic-Related Deal Litigation Highlights Buyer Leverage in Transactions Requiring Debt Financing

Cooley M&A

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.

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The Collapse of Silicon Valley Bank: The Start of Great Financial Crisis 2.0?

Mergers and Inquisitions

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.) billion loss on a $21 billion portfolio. Who deserves the blame.

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Trader of the Year Hedge Fund: Conversant Capital’s David Alfred

The TRADE

I started my career at Bear Stearns in 2001, then migrated to Credit Suisse in 2008. There’s a very healthy dialogue at all times at both the portfolio-level and the position-level. I was there through 2015, then Bank of America, before I joined Conversant Capital in early 2021. We are nimble and agile.

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5 Cs of Credit: How Lenders Evaluate Borrowers

Peak Frameworks

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.

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