Buyout Barons Push M&A Loans in $70B Surge
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Wall Street buyout barons are rushing to the leveraged loan market to finance takeovers and dividends as they dial up risk-taking amid a brightening economic outlook.
Loan launches that back mergers and leveraged buyouts spiked to $70 billion in the first quarter of 2021, the most since 2018 and a 60% jump from a year ago. Those that have a dividend component surged to $13.4 billion, the most since 2014, according to data compiled by
Bloomberg.
The leveraged loan market has long been the favored financing source for private equity firms looking to juice returns on corporate takeovers and to reward themselves with payouts before selling their acquisitions. As buyout firms seek to take advantage of the positive macro backdrop and increased demand for floating-rate debt to raise funding, there’s little sign of a let-up ahead.
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app instead?
Citing the unique structure of the sprawling conglomerate.
By Katherine Chiglinsky, Bloomberg
15 Mar 2021 16:56
Image: Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. Image: Bloomberg
Warren Buffettâs Berkshire Hathaway Inc. is opposing two shareholder proposals related to climate change and diversity, citing the unique structure of the sprawling conglomerate.
While the companyâs board acknowledged that it needs to responsibly manage climate risks and maintain a diverse and inclusive workforce, it said that Berkshire, which owns companies ranging from railroad BNSF to auto insurer Geico and retailer Seeâs Candies, operates on a decentralised basis, with each firm free to deal with the issues in a way thatâs best for its business and industry.
Joel Greenblatt’s Portfolio and Recent Buys
Joel Greenblatt is an American investor and hedge fund manager who heads New York-based Gotham Asset Management. The legendary value investor who is famous for his “Magic Formula” investing debuted on Wall Street working for an investment firm that invests primarily in merger arbitrage. However, Greenblatt later realized that the rate of risk is significantly higher in the merger arbitrage strategy compared to the potential profit-making opportunities. He believed risking $10 to earn a dollar isn’t a wise strategy. Greenblatt then started finding investment opportunities that offer a higher reward with lower risk: