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Bankers Now Soul Searching

By The Prince ⋅ April 25, 2008 ⋅ Post a comment

As most of you know the Prince is a fan of Jonathan Knee and his book Accidental Investment Banker. Mssr. Knee wrote a really interesting article yesterday in the WSJ entitled "Must I Bank?". Not sure many people saw it since it was buried in the paper.
Here is an excerpt:
"When the music of financial-services contraction [...]

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 [...]

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 [...]

Private Equity’s Investment Style Drift

By The Prince ⋅ April 9, 2008 ⋅ 4 comments

Since the leverage loan market closed this summer, financial sponsors (private equity firms) have been pretty much absent from the buy side. Without debt financing, the sponsors have been unable to LBO new companies. This has had a profound impact on investment banking divisions since sponsors paid more in fees than other clients due to [...]

Bear-JP Morgan Integration: Oh the Irony

By The Prince ⋅ April 5, 2008 ⋅ Post a comment

5 April 2008 - "Jeff Mayer, a former member of Bear’s five-person executive committee and a co-head of fixed income, was named vice chairman of J.P. Morgan’s investment bank, with a focus on global risk. J.P. Morgan also named Craig Overlander, the other fixed-income co-head, as a vice chairman to focus on global clients.
Mike Nierenberg, [...]