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Why PE Investors Care About Interest Rates

OfficeHours

For the average person, rising interest rates are not ideal for those with significant amounts of debt, those looking to purchase a home with a mortgage, or many other use cases. Once the cash available is used to service the debt, whatever is left over is paid as dividends and used to calculate returns for private equity investors and LPs.

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Analysis-Bayer investors weigh need for cash call amid stifling debt

Global Banking & Finance

Analysis-Bayer investors weigh need for cash call amid stifling debt By Ludwig Burger and Emma-Victoria Farr FRANKFURT (Reuters) – Bayer may have to ask shareholders for fresh capital to shore up its finances even after the debt-laden German drugmaker slashed dividends last week in its latest effort to get wiggle room, analysts said.

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Sizes of European government debt trades halve in 2023-ICMA

Global Banking & Finance

Sizes of European government debt trades halve in 2023-ICMA By Yoruk Bahceli (Reuters) – Investors are having to put on much smaller trades more frequently in Europe’s government bond markets this year, trade body ICMA said on Wednesday, against a backdrop of declining liquidity as markets adjust to sharply tighter monetary policy.

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It is time to bridge the gap between private debt asset sellers and investors

Global Banking & Finance

It is time to bridge the gap between private debt asset sellers and investors By Christoph Gugelmann, CEO, Tradeteq Investor appetite for private debt has made it one of the most popular segments in the alternatives sector and, more broadly in the overall lending landscape.

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Investors like the high dividends and buybacks energy companies offer, but debt is starting to rise again

CNBC: Investing

Oil companies are increasing the debt at a time when shareholders expect rich dividends and robust stock buyback programs.

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Collateralized Debt Obligation (CDO)

Wall Street Mojo

What is a Collateralized Debt Obligation? It happens when capital borrowers like banks, big companies, and other financial institutions lose capital provider's trust like depositors, investors, and capital markets. Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work?

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Why PE Investors Care About Inflation

OfficeHours

For private equity investors who have been monitoring the situation around inflation for the last few months to a year, many have been disappointed to see the slow trajectory with which inflation has been coming down from highs. Inflation can also have an impact on the cost of debt required to finance an investment.

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