Eddie O’Neill of Avoca Captital, CFA talk on Leveraged Buy Outs (LBO’s)

Eddie O’Neill, Avoca Capital – Leveraged Loans from CFA Ireland on Vimeo.

Leveraged Loans or Leveraged Buy Outs are a fascinating segment of the market and in this talk the CFA was able to obtain one of the best versed voices in the industry, Eddie O’Neill of Avoca Capital. This video is an absolute must for anybody hoping to understand the manner in which various private equity leveraged buy outs occur from a high level overview, he also looks at where the market has come from and where he expects it to go.

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The end of Wall Street

This is an insightful look into the financial crisis, looking at it from the view of how mass borrowing for residential real estate lead to a bubble, the political input into the causes as well as the packaging of these loans and how it ultimately lead to the closure of Bear Stearns and Lehman Brothers.

This is a great video set, surprisingly the Wall Street Journal are the makers of it, you don’t see that kind of departure from vested interests very often.

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Nouriel Roubini and Nassim Taleb on CNBC

Two world renowned commentators give their views on the economy and market. The points they are making are that the same people are in charge, the system is not fundamentally changing, and that drastic measures are required in order to solve the financial crisis.

The main points made are that cash is king, the bottom has not fully been reached, and that we need to change the way the economy is driven, we need to get back to real physical capital rather than unproductive activities such as housing and finance.

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Emerging markets dont' have it any easier

For many people the transfer of wealth from west to east is a cause for concern. China’s unbridled rise (one which some believe will place them in the seat currently held by the USA), with India not far behind is one aspect of it. The other is that of oil rich middle eastern countries using their Sovereign Wealth Funds (SWF’s) to buy up assets of western companies a knock down prices – although to be fair they have lost billions by doing so as values fell further since the time of purchase.

However, it seems that in this global world we truly are all connected. An article in SiliconeIndia has indicated that within the next ten days many companies there will have to shed 25% of their employees in order to cope with their financial crisis. The Reserve Bank of India has …

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Emerging markets dont’ have it any easier

For many people the transfer of wealth from west to east is a cause for concern. China’s unbridled rise (one which some believe will place them in the seat currently held by the USA), with India not far behind is one aspect of it. The other is that of oil rich middle eastern countries using their Sovereign Wealth Funds (SWF’s) to buy up assets of western companies a knock down prices – although to be fair they have lost billions by doing so as values fell further since the time of purchase.

However, it seems that in this global world we truly are all connected. An article in SiliconeIndia has indicated that within the next ten days many companies there will have to shed 25% of their employees in order to cope with their financial crisis. The Reserve Bank of India has …

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Bubble Bubble, Boil and Trouble, Markets Quake and Markets Crumble

There is talk about the property bubble, and now an oil and gold bubble. Commodity prices have had a massive bull run, so will does this bull still have ground to cover? There is a real possibility the answer is yes… quite so.

Commodities have cycles like any other product, there are cycles such as ‘winter demand’ for oil, or a rise and fall as economies boom and bust, but then there are structural cycles that have to do more with supply and demand. There has been (for instance) a big upsurge in demand for oil but Opec have not increased output in order to meet the demand. The US Economy is slowing down (don’t use the R word!) and Europe is following, so if some of the major markets are starting to slow then what will that do to Oil or other commodities?

Oil prices in Euro’s prices went from €16 to €68 because the Euro got so much stronger against the Dollar, so is the solution to buy from the Iranian Oil Bourse which deals in euros? Supply …

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Stoozing? … It's Money for nothing and the bips for free.

I kind of paraphrased a line from the Dire Straits song ‘money for nothing’ and replaced ‘chicks’ with ‘bips’. Bips are ‘Basis Points’ and it normally refers to hundredths of a percent when you are talking about rates, so 33 bips is 1/3 of 1% or 0.33. Anyways, this post is about Stoozing or getting money for nothing. Its something that has become more and more popular as of late and it’s also a loophole in the financial system that is being widely abused it even has its own website.

Stoozing is where you get a credit card on 0% and max out the money you can take on it at 0%. Normally cash withdrawals have a separate interest rate but if you know a person who owns a shop you can run it once for your total credit limit and have them give you the money (illegal – I’m just saying how it seems to work in practice). You then place this money in the highest paying deposit account …

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