, Columnist
Everyone Wants Debt, Not Equity
Dividend recaps, hedge fund analysts, TD Bank AML, Goldman Sachs succession, X valuation, perpetual strife and lottery financial engineering.
Two stylized facts about contemporary financial markets are:
One way to jointly describe these facts might be “there is high demand for risky debt and lower demand for risky equity.” Or as Steve Schwarzman — the founder of a private equity firm that is increasingly a private credit firm — once put it: “If you can earn 12 per cent, maybe 13 per cent on a really good day in senior secured bank debt, what else do you want to do in life?”