YOU SAY, HEY, THEY ARE GOING BIGGER WHEN WE ARE GOING SMALLER, THEY ARE LEVERING UP WHILE WE ARE DELEVERING.
|
|
Hedge funds tracked by Credit Suisse show low gross exposures to equities – near three-year lows – so investors aren't yet levering up.
|
|
More companies are using excess capital to reduce debt and add to cash reserves, rather than levering up and making risky bets as they have in the past.
|
|
Fears of a global recession are scaring U.S. companies, pushing them to use excess capital to reduce debt and add to cash reserves, rather than levering up and making risky bets as they have in the past.
|
|
Sources tell CNBC that SoftBank has lined up financing for the offer from three global banks and would be comfortable levering up the balance sheet of the new company to between 5 and 7.983 times earnings before interest, taxes, depreciation and amortization.
|
|
Athanasia also noted that consumers have been spending more and "levering up" following the U.S. tax code overhaul in December, and that Bank of America has been monitoring the borrowing of its clients across other banks but so far has not seen any issues in terms of credit quality.
|
|
The Chinese government had put plans in place to reduce the high levels of debt in the country's economy this year, but the negative economic effects of the trade war have put those plans on the back burner and companies are again levering up, in large part with dollar-denominated debt.
|
|
WHEN EVERYBODY IS MAKING MONEY ON EVERYTHING AND THEY'RE JUST LEVERING UP AND MAKING MORE MONEY AND EVERYBODY IS HAPPY, EXCEPT MAYBE IF YOU'RE IN THE BOND MARKETS, THEN YOU KNOW, YOU KIND OF IGNORE IT. IT'S ALL – BUT NOW YOU HAVE TO PAY ATTENTION TO IT AND THAT INTRODUCES THE UNCERTAINTY.
|
|
" Put another way, Pimco, which had assets under management of $1.5 trillion as of March 31, said "the global economy finds itself today in a state of disequilibrium that has remained stable thus far only via three policy props: zero or near-zero interest rate policy, QE (Quantitative Easing), and levering up in China, some other emerging market economies and the European periphery.
|
|
BUT MY POINT IS, THEY ARE LEVERING UP, THEY'RE BUYING SHARES, THEY'RE DOING EVERYTHING THEY CAN DO TECHNICALLY TO DRIVE THE STOCK PRICE UP, BUT AT THE END OF THE DAY THE FUNDAMENTALS WILL RULE AND BECAUSE OF ALL THE SHARE REPURCHASES, IT'S A VERY SMALL FLOAT IN THE STOCK, SO IT'S -- AS HARD AS IT IS TO BUY THE STOCK, IT'S ALSO THAT HARD TO SELL THE STOCK.
|
|