Sunday TImes Flurry III- Leon Black and downturn in PE
Yields on corporate debt imply a 24% corporate default rate. This data point only accounts for publicly traded/quoted bonds. Entering a down-cycle I would imagine the default rate would be significantly higher for private equity investments. I cant believe all of these supposedly very smart people would leverage up companies with such naive assumptions about liquidity in the debt markets. Shit hits the fans part 97.
