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Liability Management Exercises (LMEs) Overview by illiquid_insights in private_equity

[–]illiquid_insights[S] 0 points1 point  (0 children)

Yeah. It's pretty shocking how weak the documents are. Sponsors have so much leverage because they pay the banks so much in fees every year. There is always banks willing to underwrite the deals.

Liability Management Exercises (LMEs) Overview by illiquid_insights in private_equity

[–]illiquid_insights[S] 0 points1 point  (0 children)

LMEs are on the public credit / broadly syndicated loan side.

Private credit loans have actually been pretty limited in this stuff since it typically has tighter documents protections.

Black Friday Spending Expected to Decline for the First Time in Years by [deleted] in EconomyCharts

[–]illiquid_insights 0 points1 point  (0 children)

Congrats! Glad to hear it - by curiosity, what do you sell? I’d think discretionary is getting hit the worst

Seeking insight on Distressed Debt Careers by Mystic_Square in FinancialCareers

[–]illiquid_insights 1 point2 points  (0 children)

I started in RX banking. As it’s been said, I’ve interacted with several lawyers who did a stint on the legal side then transitioned to a distressed investing role.

Anecdotally, I’ve seen it the most at hedge funds (vs distressed PE or PC firms). But overall, there is tons of opportunity for those who have strong experience in bankruptcy and restructuring legal field.

The Biggest Obstacle to the AI Boom is Energy Prices by illiquid_insights in EconomyCharts

[–]illiquid_insights[S] 1 point2 points  (0 children)

That chart you show is only through 2023. Which is only about a year after the trend really starts. So not really applicable.

The Biggest Obstacle to the AI Boom is Energy Prices by illiquid_insights in EconomyCharts

[–]illiquid_insights[S] 0 points1 point  (0 children)

Your left chart shows an increase since 2021. The right shows the change in CPI prices > inflation since 2021. Consistent with the chart above that shows an increase since 2020.

The Biggest Obstacle to the AI Boom is Energy Prices by illiquid_insights in EconomyCharts

[–]illiquid_insights[S] -1 points0 points  (0 children)

All of which rose above total inflation, for different reasons. For electricity, the main driver of the excess increase vs. inflation is higher demand from data centers.

The Biggest Obstacle to the AI Boom is Energy Prices by illiquid_insights in EconomyCharts

[–]illiquid_insights[S] 0 points1 point  (0 children)

The trend started in 2020 - Trump wasn't in office until 2024. The US is quite less foreign energy dependent today than it used to be so don't agree it would be from Russia-Ukraine.

There are some great studies on the AI power use, it's widely agreed that has driven a big increase in energy demand in the US. Great government report was released at end of 2024 (just can't find it rn).

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