De-Leveraged Buyouts

‘The Fall of Icarus’ by artist Marc Chagall Two reports about strategic M&A and private equity were released recently.   Paul Weiss, a well-known corporate law firm, prepared a concise survey of the top 25 non-financial M&A transactions, highlighted at Research Recap here.  The report focuses on terms and characteristics.  However, a notable data-point is financial …

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Hedge Your Hedge Say it ain’t so.  How many more obscure, undercapitalized financial institutions are lurking in the midst?  According to a New York Times investigative article, and summarized here, Customer Asset Protection Company (Capco), based in Burlington, Vermont, may be at risk. Capco provides catastrophic insurance to wealthy clients in the event their brokerage firm collapses.  …

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Milken: Why Capital Structure Matters

Modigliani-Miller Proposition II CAPM

Michael Milken, the former junk bond king, explains why capital structure matters and how it should be modified with regard to market signals.