New Trend on Wall Street
Copyright Jack Mixner. 714 449 1040. www.mixnerstrategy.com
Investment banks are buying advisors of bankrupt businesses and out-of-court restructurings (Wall Street Gets Ready).
Easy credit has allowed companies to mask underperformance by re-scheduling debt. The median bond rating is BB, high grade junk. A decade ago it was BBB, an investment grade rating.
The investment bankers with their new consultancies are ready for a new round of defaults. Interesting times may be brewing, not all of them good.
Strategic Implications
Manage your debt. Get your house in order. Tough times may be around the corner.
References
Wall Street Gets Ready for Rain. http://dealbook.blogs.nytimes.com/2006/11/14/wall-street-gets-ready-for-rain/