Firm Commentary

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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 [...]

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 [...]

Contrarian Goldman Leverage, Liquidity, & Regulation

By The Prince ⋅ April 7, 2008 ⋅ 2 comments

In lieu of the recent predictions that the Prince made for future investment banking regulation, there are new developments that warrant his commentary.  First, by and large, the predictions made by the Prince ended up being part of Paulson’s plan for more regulation of the financial services industry.  The idea the Prince would most like [...]

Lehman Offering: The Fears May Grow

By The Prince ⋅ March 31, 2008 ⋅ 5 comments

Add Lehman Brothers to the list of Wall Street firms that are going hat in hand for more capital in these uncertain times where confidence is wholly absent in the marketplace.  Lehman is selling at least $3bn of new shares to bolster its capital base and end any fears about a cash shortage.  If the [...]

Investment Bank Regulation Is Changed Forever

By The Prince ⋅ March 25, 2008 ⋅ 9 comments

This morning in the New York Times, Andrew Ross Sorkin draws attention to the the fact that the Fed was calling the shots behind the Bear Stearns "bailout."  This point was obvious last week.  Just because the price moved from $2 to $10 and there is speculation about whether or not the Fed set the [...]

Morgan Stanley Writedown is Disappointing

By The Prince ⋅ December 19, 2007 ⋅ One comment

Morgan Stanley released 4Q earnings before the open this morning.  Despite the terrible deterioration in the companies mortgage trade and its mortgage portfolio the stock is up today.  Morgan Stanley swung to a fourth-quarter loss as the company took $9.4 billion in mortgage-related write-downs.  The second-largest brokerage firm reported a net loss for the quarter [...]

Morgan’s worst insult? Goldman’s results

By The Prince ⋅ December 19, 2007 ⋅ Post a comment

As if the terrible results announced today at Morgan Stanley weren’t bad enough, Goldman’s success this quarter must feel like a slap in the face at Morgan.  Witness the numbers.  Morgan took a $9.4Bn mortgage write-down in its fiscal fourth quarter.  Goldman didn’t take a hit when it reported results on Tuesday.  MS had a [...]

Goldman Trading at 8.8x P/E & 10x Forward

By The Prince ⋅ December 16, 2007 ⋅ 2 comments

In anticipation of Goldman’s earnings release on Feb 18 I have been buying the stock between $200 and $210.  GS’s price to earnings is absurdly low for such a high quality asset and well managed company.  I’m also expecting that GS will surprise on the upside when they announce earnings since they have navigated the [...]

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