What we’re reading (7/24)
“Dan Och Finally Kills The Hedge Fund He Founded” (Dealbreaker). “In spite of indications that Och had perhaps thought better of obliterating the creation that still houses a substantial chunk of his fortune, it turns out that a billionaire scorned will not be denied his vengeance, whatever the cost.”
“Buyout Barons Feast On Excesses Of Last Boom” (Reuters). “The interest rate on high-yield loans to large borrowers from banks has roughly doubled to 10% since late 2021, reckons investment bank Configure Partners, while private lenders now charge about 12%. That’s a problem for corporate matchmakers. Corporate debt usually features change-of-control provisions that require it be paid off if the borrower changes hands. That forces buyers to refinance old cheap loans with new expensive ones.”
“The Markets Are Counting On The Fed To Solve A Tricky Puzzle” (New York Times). “The majority opinion on Wall Street is still that there will be a recession in the next 12 months, a Wall Street Journal survey this month showed. But because of the onslaught of data indicating that the economy remains in growth mode, many economists are lowering the odds of a recession happening, and expect that if one occurs, it will be mild.”
“Why The Fed Isn’t Ready To Declare Victory On Inflation” (Wall Street Journal). “Some Fed policy makers and economists are concerned that the easing in inflation will be temporary. They see inflation’s slowdown as long overdue after the fading of pandemic-related shocks that pushed up rents and the prices of transportation and cars. And they worry underlying price pressures could persist, requiring the Fed to lift rates higher and hold them there for longer.”
“‘Barbenheimer’s’ $246 Million Weekend Joins ‘Star Wars’ And ‘Avengers’ As One Of The Biggest Openings Ever” (CNBC). “When forecasting for the two movies first started, experts predicted that ‘Barbie’ would have an opening weekend in the $50 million to $60 million range, while ‘Oppenheimer’ looked poised to sell between $30 million and $40 million worth of tickets.”
