According to Goldman Sachs strategists, the answer is fairly simple: Bet on companies that don't see so much turnover in their shares.» Read More
Breaking BRICs: Geithner wants Brazil's help on undervalued renminbi. [FT]
Dueling slide shows: Berokwitz hits back at Einorn! [Business Insider]
Intense media navel gazing: AOL/HuffPo Edition. [CNET]
Common sense: Coming to TSA checkpoint near you? [NY Times]
Americans are getting poorer —unless they're not. [Economix]
Danaher's cash purchase of the medical diagnostics company Beckman Coulter came in at $5.8 billion, well above the price point that many analysts would have pointed to for Beckman.
Rob Kindler, the head of M&A for Danaher's advisor Morgan Stanley, said today that the price was driven up by the access of private equity to easy credit.
Dean Baker has provided a provocative and must-read response to the report of the Financial Crisis Inquiry Commission.
His basic response is that the entire premises of the commission was wrong. Instead of focusing narrowly on the “financial crisis” it should have asked how we got into an economic crisis.
“The FCIC investigated risky investments, lax regulation, excessive leverage. And it downplayed the more mundane, but vastly more important, collapse of the housing bubble,” Baker writes.
In the wake of the Facebook-Goldman fiasco, it’s asking: why does the SEC have a built-in bias against private placements?
John McLaughlin, an attorney whose firm represents Goldman Sachs , offered an answer last week—the SEC is defending its turf.
The latest sign that the debt markets are awash in liquidity comes in the form a $500 million covenant-light debt issuance to pay a dividend to its private-equity owners.
Aleris International Inc—a Beechwood, Ohio aluminum company that emerged out of bankruptcy last year and is now owned by Oaktree Capital Management, Apollo Management, and Sankaty Advisors—sold the seven year notes at par yesterday to yield 7.625 percent.
The bonds offer some of the weakest lender protections of any deal to come to market recently, according to analysts at Moody’s and Covenant Review quoted in Michael Aneiro’s story in today’s Wall Street Journal . In particular, the covenants don’t provide checks on the ability of the company to borrow more and push cash out to sponsors.
The sands in Uncle Sam's debt ceiling hourglass are sliding down. Between April and May, according to Treasury Secretary Timothy Geithner, we will have exhausted the nation's borrowing authority.
Junior Senator Pat Toomey (R-PA) is hoping his "Full Faith and Credit Act" will be the answer. Geithner, however, has called the bill "quite harmful."
What Toomey's billwould do is force the Treasury prioritize payments, paying off debt first and then paying for programs like Social Security. If passed, it would allow the US to hit the debt ceiling without automatically triggering a default on the nation's debt. The bill has support from the House Republican Study Committee but with such harsh words from Treasury and from some Democratic Leaders, the act faces an uphill battle on Capitol Hill. I caught up with the Senator and talked about all things budget reform and tax reform.
Geithner attempts to hash through capital control issues in Brazil. [CNBC]
Guess what? Monetary policy isn't a precise science with easily predicted results . [Bloomberg]
SEC lawyers—who missed Madoff crimes—get major hookups at private law firms [NY Post]
Santander bids on Polish bank. [DealBook]
"Nile Revolution" isn't going away. [Reuters]
A few billionaire investors have scored, but the average hedge fund worker isn't likely to see a fat bonus this year.
Muni bonds had a great year but don't assume that the party will continue into 2015, says Alexandra Lebenthal.
Underneath the euphoria of an improving job market, there's one nagging statistic and it reveals the real job killer, says Peter J. Tanous.