The Prince

Outsourced Consumer Debt Collection

By The Prince ⋅ April 24, 2008 ⋅ Post a comment

24 Apr 2008 - As if the frustration of consumers directed towards outsourced technical support was not enough, now it appears that outsourcing companies in India and other countries are calling on American consumers to try to collect consumer debts. In fact, this form of outsourcing is a growth industry, according to the New York [...]

Great Conditions for Cross-Border M&A?

By The Prince ⋅ April 24, 2008 ⋅ Post a comment

Since the credit crisis began everyone has been wondering what kinds of buyers would step in to replace the enormous hole left by private equity firms. First, we heard that strategic buyers would become more important now that they lacked competition from private equity firms. The only problem with this, is that it takes for [...]

UBS Investment Banking Division Cuts Back

By The Prince ⋅ April 23, 2008 ⋅ One comment

23 Apr 2008 - In a speech to shareholders today UBS CEO Marcel Rohner, said the investment banking business is going to have to go it alone. It will no longer be able to use cash from UBS’ wealth management business to grow.
He emphasized this by saying, “The capital required by the investment bank [...]

GE Earnings Fun

By The Prince ⋅ April 23, 2008 ⋅ Post a comment

23 Apr 2008 - The Prince loves the drama at GE right now. Immelt defending the firm’s business model this morning. Jack Welch going after Immelt last week. The Epicurean Dealmaker weighs in with some great comments for Jack. The Prince has a lot of respect for GE as a company, Jack Welch, and Jeffrey [...]

Alliance Boots: Leveraged Loan Market Thawing?

By The Prince ⋅ April 23, 2008 ⋅ Post a comment

Is the leveraged loan secondary market thawing slightly? The syndication of Alliance Boots LBO related debt, which was originally offered in a bloodbath (something below 90% of par) the week the leveraged loan markets shutdown this summer, is being put back on the table. JP Morgan, Deutsche, and slew of other lenders are retrying the [...]

Sponsors Have Edge in Clear Channel Fight

By The Prince ⋅ April 22, 2008 ⋅ Post a comment

"This proposal is yet another disingenuous attempt by the banks to avoid living up to their commitments. The banks want to move this case into the back room because they fear that a public trial will clearly expose their misconduct," the private equity firms said in a statement.
Sounds like fighting words to the Prince. The [...]

Ken Moelis on Private Equity and Investment Banking

By The Prince ⋅ April 21, 2008 ⋅ One comment

A few weeks ago Ken Moelis, former Drexel, DLJ, UBS rainmaking banker, was interviewed on Bloomberg about the leveraged loan market and the changes he expects to see at investment banks. Few people are as well placed as Ken Moelis to make such forecasts and his commentary is fascinating. He also answers questions about his [...]

Cost Savings Anyone?

By The Prince ⋅ April 21, 2008 ⋅ Post a comment

21 Apr 2008 - The Inquisitor has a lovely article this morning all about getting fired in investment banking. "So, what happens when you’re laid off and shown the door? Well, to start with, you suddenly have an additional 80-100 hours of free time each week (if you’re an Analyst)." or maybe "In investment banking [...]

The Bank of England Responds

By The Prince ⋅ April 21, 2008 ⋅ 2 comments

Finally, a constructive move by a central bank to actually address the real problem in the credit crisis, confidence. Lowering rates is not going to fix this problem. Every financial institution must be confident that its trading counterparties are on financially secure footing before banks begin to lend to each other again. This commentary by [...]

Better Risk Process or Just a Better Outcome This Time?

By The Prince ⋅ April 15, 2008 ⋅ 2 comments

Since the bloodbath on wall street began almost every major piece in the press has mentioned Goldman as the shining example of great risk management. All these articles imply that other firms do not have practices, people, or a risk management culture that apparently Goldman possesses. However, no one has come out and said what [...]

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