Leveraged loans or High yield bonds

Off late most investors of below investment grade debt – be it leveraged loans or high yield bonds – are intently focused imageson three specific questions, two of which are fairly straight forward, while the third is more complex:

Q1. What is the state of the credit fundamentals and tangentially, what are current underwriting standards like?

A1. Solid and reasonable, respectively

Q2. What are valuations like in the market?

A2. The current and forecasted benign default environment is supportive of current valuations and spread levels; however, macro influences could lead to bouts of volatility Continue reading “Leveraged loans or High yield bonds”

Book review : The Greatest Trade Ever : by Gregory Zuckerman

Oscar Wilde once said that ‚if one cannot enjoy reading a book over and over again, there is no use in reading it at all.download

‛Most of the books of the subprime era were dedicated on the contagion, failures and humongous losses, for Investment banks, Financial institutions and Government agencies.

The Greatest trade ever – by Gregory Zuckerman is a long conversation and co-operation of the person John Paulson, ( whose Hedge fund was in lime light the famous Abacus deal were Goldman Sachs was in trouble). Continue reading “Book review : The Greatest Trade Ever : by Gregory Zuckerman”