A numbers game

Martin Fridson

pg23-fridson-gif

The Wall Street Journal recently reported that leveraged buyouts (LBOs) are becoming more leveraged. In the second quarter of 2005, according to statistics compiled by research firm CreditSights, LBOs had average multiples of debt to earnings before interest, taxes, depreciation and amortisation of 5.16 times. The comparable figure for the second quarter of 2003 was 3.85 times.

If institutional investors' appetite for high-yielding instruments continues, we can look forward to additiona

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: