JPM dodges bad Buyout loans
Curious about what industry insiders think about this article?
https://www.wsj.com/articles/jpmorgan-dodges-a-bu…
the market conditions ended up being in JPM favor, but long term is this s good strategy? and I noticed even though they didn't participate in these recent buyouts they are still one of the largest in the world. So i am assuming they are still doing a lot of deals just not this risky?
Can't really time the markets, but when those deals were struck / debt priced it was clear at least some rate hikes were coming which is probably why JPM sat out.
Also, a lot of the bag holders on these debt issuances were advising the buyer, so as lead left advisor they are going to be shouldering most of the debt load (BofA with Citrix and Nielsen, MS with Twitter). JPM was sellside advisor in the Twitter and Nielsen deals and not involved in Citrix, so just based on that they take no debt or very little debt.
Tough to be stuck with absolutely junk debt like Twitter at a low interest rate when rates have run up so much
Any implications of this for layoffs?
How would anyone on this thread come to a conclusion about layoffs and how this avoidance of debt would play into that?
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