Market Currents

Dell (if it happens) is just the start of an LBO boom, according to a group of P-E honchos...

Wednesday, January 23, 3:41 PM ET
Dell (if it happens) is just the start of an LBO boom, according to a group of P-E honchos holding court at Davos. With debt cheap, companies trading at reasonable multiples, and investors dying for yield, the pieces are in place. "There is so much money chasing yield," says Scott Minerd; $10B of debt entering the market from a Dell deal would be like spitting in the ocean.

This Market Current was sent to 3,885 people who get email alerts on BX.

Get email alerts on BX »

Share this Market Current

Short URL:

Track new comments on this story

This news story has 3 comments:

Whitehawk Comments (2802)

The problem is though that debt is not cheap on a relative basis, due to cheapened rates (money). Savvy creditors will want more compensation for the risks they're looking at. Perhaps good arguments can be made for Dell, but I'd want to see the prospectus and projections. For a general LBO boom, these relatively low rates have to be sold wholesale to unsuspecting investors, and will lead to losses.

23 Jan, 03:54 PM Reply Like

divinecomedy Comments (428)

And a possible increase in unemployment as well? After all, these LBO'ed companies like to get rid of people no?

23 Jan, 09:25 PM Reply Like

New Century Comments (129)

I just published an article about this today: http://seekingalpha.co...

24 Jan, 12:20 AM Reply Like

LATEST|

TODAY SO FAR|

YESTERDAY

Other date

DJIA (DIA) S&P 500 (SPY)