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Count me as one of the people who doesn't know about it. Can you explain more?
by munificent 4y ago
Count me as one of the people who doesn't know about it. Can you explain more?
- ravel-bar-foo 4y agoI don't know about this specifically, but my guess is that when loans are cheap it is much easier to perform a leveraged buyout: taking out a loan on the assets of the company being acquired.
- nostromo 4y agoIt's dense, but here's a good paper on it: https://www.nber.org/papers/w25505 https://www.nber.org/papers/w25505 And here's a more accessible article about the relationship: https://www.chicagobooth.edu/review/how-low-interest-rates-can-hurt-competition-and-economy https://www.chicagobooth.edu/review/how-low-interest-rates-c...