by Tim Delaney | Apr 28, 2010
We stumbled upon these striking charts in an article in the Financial Times recently. It has interesting implications for credit analysis. The last decade’s boom in credit has been remarkable, led, of course, by mortgage-backed securities. But debt funding by...
by Ron Carleton | Feb 19, 2009
For many companies, financing an acquisition is a two-step process. The long-term strategy might call for raising cash using syndicated term loans and revolvers, bonds, equity, and asset sales. However, many companies use bridge loans to initially fund acquisitions,...
by Ron Carleton | Jan 26, 2009
Over the past 15 year, many businesses have adopted sophisticated inventory tracking systems and just-in-time inventory policies. As a result, they have gotten much more efficient in their use of inventory, as shown in this chart: Source: Wachovia Economics This...
by Ron Carleton | Jan 10, 2009
How did General Motor’s run through so much liquidity so fast? Static measures like cash and liquidity don’t really give us the full answer. We need a more dynamic view of what’s driving GM’s liquidity; something that focuses on uses and sources instead. Here’s a...
