Category: Personal Finance

Calstrs carried interest payments to private equity managers fall as exits slow – Private Equity News

Calstrs carried interest payments to private equity managers fall as exits slow – Private Equity News

Slowing exits lead to reduced carried interest payments. Is this indigestion from overpriced deals? Will it lead to markdowns? Yet Calstrs needs to keep feeding the Private Equity beast. https://www.penews.com/articles/calstrs-carried-interest-payments-to-private-equity-managers-fall-as-exits-slow-20191107

Beware the private equity echo chamber

Beware the private equity echo chamber

This article raises 3 key issues related to private equity – 1) when there is a failed IPO do the PEs mark down the private valuation on the assumption that failed IPO implies that private value is too high?, 2) what is the process to ensure private sales and/or swaps are properly valued and arm’s …

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Federal government has dramatically expanded exposure to risky mortgages – The Washington Post

Federal government has dramatically expanded exposure to risky mortgages – The Washington Post

They’re back. Risky mortgages return. I’m surprised 10 years after crisis a better measure than debt to income ratio hasn’t emerged. Residual income should be considered as preferred measure of mortgage risk. https://www.washingtonpost.com/business/economy/federal-government-has-dramatically-expanded-exposure-to-risky-mortgages/2019/10/02/d862ab40-ce79-11e9-87fa-8501a456c003_story.html