Hillarys Refinancing

[trouserpress]

Hi All,

Just been hearing on BBC Radio 4 about the impending failure of Private equity "formulas" due to the rising interest rates. Hillarys has just been refinanced. Anybody have the inside track on this?

Me.

[red]

This should not effect the buyout as all work has now gone through. What it means is that banks are not as eager to offer money up front with the uncertainty of the world economy to either domestic or commercial ventures.
In America the banks have been lending money on mortgages to people that have defaulted in the past and they have defaulted again en mass.
These bad debts then get bundled up and sold on to credit chaser companies who hope to recoup far more than they paid for the debt in the first place. This has not worked out as well as expected so they have stopped buying bad debt from the big banks. The big banks in turn have stopped lending to bad risk customers, including funding large buyout operations.
The USA public gets wind of this and panics. So the world economy is on a slide down wards.
It is a lot more in depth than this but that is the nuts and bolts of it.
Couple all this with the rising rates across Europe and it scares the living bejesus out of investors. The markets collapse as they did last week and all hell breaks loose on Wall Street followed closely by the LSE and Hang Seng and most of Europe. Mind you, it was not really all that much of a crash, 3% off the UK shares and a little less of the Dow. It was more of an adjustment than a crash.
It wont effect Hillary's buyout.