whatok

17 ms·

121.
by whatok 6y ago
PE is very cyclical and rates have been very low. Massively levered PE transactions are usually tied to the business cycle. When the economy is doing well you're able to get away with larger and more levered transactions than normal. I
122.
by whatok 6y ago
I'm not a fan of private equity but I'm also not a fan of rants directed my way when I'm answering a question someone asked. Please take this somewhere else.
123.
by whatok 6y ago
How does a PE firm make money if a shell company of theirs is losing money while another arm of it makes money? Also, if the only financing a business can access is basically consumer credit card rates, they probably weren't a going co
124.
by whatok 6y ago
> If I could run a company better/extract more value from it, say, by decreasing expense, increasing revenue, and therefore profits, I'd write myself a big check quarterly and continue running the company. If you can. If you ca
125.
by whatok 6y ago
So you're saying that the original creditors made money off this and new creditors through secondary market transactions are left holding the bag? That's partially true but a massive portion of this debt is in pension funds or pas
126.
by whatok 6y ago
Ok, a potential positive sum is definitely better than zero but once again, how exactly are creditors making money off this? The grandparent's post is implying that somehow no one is losing money in this situation. I'd like to hea
127.
by whatok 6y ago
As with anything in life with leverage, debt-financed buyouts magnify the upside as well as the downside.
128.
by whatok 6y ago
Private equity firms raise funds (usually have a 10yr investment horizon) and use these funds to serve as the equity tranche for a buyout that the remainder is financed with debt. Banks (or other investment firms sometimes nowadays) will pr
129.
by whatok 6y ago
Can you explain how the creditors of 4bn in Neiman Marcus debt are making money off this?
130.
Google tells employees they can’t expense food when working from home(cnbc.com)
24 points by whatok 6y ago|8 comments
131.
by whatok 6y ago
Ah my mistake. Didn't recognize the domain.
132.
by whatok 6y ago
The book is also available on Prof Gelman's department site which I would probably link to instead: http://www.stat.columbia.edu/~gelman/book/
133.
by whatok 6y ago
What "bad work" were people doing before Uber and Lyft? Were all of these people previously unemployed before these companies came around? Did any of these drivers quit other employment to be an Uber or Lyft driver?
134.
Neil Ferguson resigns after breaking lockdown rules to meet his married lover(telegraph.co.uk)
5 points by whatok 6y ago|0 comments
135.
Uber CEO Says Layoff Decision to Be Announced Within Two Weeks(theinformation.com)
50 points by whatok 6y ago|26 comments
136.
by whatok 6y ago
Private equity does it. Why not these guys? But seriously, not charging SOME sort of fee on capital that is likely to be uninvested on a short-term horizon is giving investors a pretty valuable free option. I'm assuming they have a fle
137.
by whatok 6y ago
% returns are usually quoted vs AUM; not invested capital.
138.
by whatok 6y ago
Boeing has received no bailout money.
139.
by whatok 6y ago
Delivery has taken so long that they are going to run into refund periods soon. There's normally massive down payments for these which deters cancellations but these aren't ordinary times. You are almost certainly going to see con
140.
by whatok 6y ago
Nearly half (2.25%) of the decline was in healthcare. "Elective" procedures on hold played a large role in that and conventional wisdom would suggest that this $ would get pulled forward into Q2. I don't think it's that
141.
by whatok 6y ago
Uber eats is still a small but growing part of their business. I'm pretty sure Uber is still losing money on Uber Eats and many of their large markets are trying to pass legislation to cap the fees they can charge. If they aren't
142.
by whatok 6y ago
The Fed has announced a bunch of facilities but the only one affecting corporates that has made purchases has been the commercial paper facility. The primary and secondary facilities are still weeks off from being active. That's not to
143.
by whatok 6y ago
>people are less likely to hold corporate debt and instead hold cash. People are less likely to hold corporate debt because the corporation has less revenue to service its debt. This omits part of the investing dynamic and is too simplis
144.
by whatok 6y ago
Aphex Twin is not a "they" and he's probably more prolific on a larger scale now than he ever was.
145.
by whatok 6y ago
-$37 now
146.
by whatok 6y ago
Trading at negative $1.43. Incredible stuff.
147.
by whatok 6y ago
John C. Hull - Options, Futures, and Other Derivatives has details on an accidental cattle futures physical settlement. https://www.passeidireto.com/arquivo/73586616/john-c-hull-op...
148.
by whatok 6y ago
The percentage of contracts that result in delivery is only a marginal factor in this case. The fact that physical delivery exists makes it so that positions must be closed out; even if the May contract is down 44% on the day and you though
149.
by whatok 6y ago
This doesn't make any sense. Issuers don't need to pre-fund acquisitions before making offers so BRK wouldn't need any JPY before acting and in the event of an acquisition closing, they would easily be able to issuer in any c
150.
by whatok 6y ago
Some stats on the program so far: https://www.sba.gov/sites/default/files/2020-04/PPP%20Deck%2...

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