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'Very' High Percentage of New Funds in Corporate Bonds: UBS Banker

There's a "very" high percentage of new funds coming into "fixed-income versus equity," Aryeh Bourkoff, Vice Chairman, TMT Investment Banking, UBS told CNBC today.

These new funds are "coming right into the corporate bond market," Bourkoff said.

Everyone got out of hand with too much leverage a few years ago. Now in deal making, the media banker said, "we are giving companies enough leverage to actually transact in sectors—sometimes with leverage ratios that are higher than if they traded in that same sector."

For example, TMT Investment Banking recently announced that they advised Bresnan Communications in selling their business to Cablevision.

The leverage in that deal was about six times EBITDA. "If you look at where stocks like Comcast and Time Warner Cable trade, it's underneath six times," Bouroff said.

Over the last ten years, media stocks haven't been a "pretty picture," which has a lot to do with the content world. The way people now watch video and television has completely changed—"now it's completely fragmented. It's hard to capture that consumers behavior," he said.

The key, according to Bourkoff, is to capture growth through a number of different ways:

  • Buy other companies
  • Go global, such as in Asia, Brazil and Germany
  • Figure out a new business model to capture these new devices

Another important issue is that many of these media companies consist of "family-controlled dynamics," Bourkoff concluded.

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Comcast is in the process of acquiring a 51 percent stake in NBC Universal, CNBC's parent company, subject to regulatory approval.

"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.