This report examines the recent market environment for buyout investing using the following criteria: fund raising and commitments, financing, valuations, and exit opportunities. Exhibits cover capital commitments, LBOs, M&As, and returns to limited partners of private equity firms.
Why is the Fed Model conveying such different notions about equity valuations compared to other measures?
According to a recently issued Federal Reserve paper, Japan could have averted deflation if it had aggressively applied monetary and fiscal stimulus during the first half of the 1990s. This Comment provides highlights of the paper, the commentary it elicited among financial pundits, as well as our thoughts about its policy recommendations if they were…
Does the hybrid equity-debt structure of convertibles add real value or simply create unneeded complexity? Topics discussed include the economic basis for returns, market composition, valuations, convertibles’ role in policy portfolios, and benchmarking issues.
S&P Core and NIPA earnings address many of the shortcomings associated with reported (GAAP) and operating earnings.
This paper speculates that while some of the excess from the equity bubble years has been worked off, the secular bottom will probably not arrive until valuations improve and despair reaches levels proportional to the preceding bull market euphoria.
If the unwinding of the recent bubble conforms to the typical pattern of past post-speculative periods, investors should be prepared for a long, hard slog.
This commentary takes an in-depth look at the U.S. equity market.
Small-cap equities have thrashed large caps over the last two years. While the performance disparity between small and large caps is already significant, the small-cap rally may still have some legs if history serves as a useful guide. Investors should maintain exposure to both small and large caps, rebalancing among both the capitalization sectors and…
Reviews investors’ concerns of capital overhang and interim valuations, and highlights that investors should keep in mind that downturns are part of the nature of this asset class, and this one comes on the heels of an unprecedented upswing.