Exact(1)
EDS also discloses in its filings that it could be forced to take a writedown for its $135 million stake in a partnership that holds leveraged aircraft lease investments with American Airlines, Delta, Continental and an undisclosed airline, if they hit turbulence.
Similar(57)
So, to avoid the Buffett rule, hold your leveraged bond portfolio in a Cayman Islands corporation.
Deutsche Bank holds $36 billion in leveraged loans.
JPMorgan also did not estimate any possible write-downs but said in its filing that it held $40.6 billion in leveraged loans and unfinanced commitments at the end of September.
If such debt is held by highly leveraged institutions, with or without obvious systemic importance themselves, then a sharp fall in the value of this debt (leading up to the forced conversion into equity) can help spread a crisis far and wide.
I'm partial to Freeport as the most leveraged earnings play near term if copper holds above $4.50 a pound.
J. Crew's second-biggest shareholder, the hedge fund Paulson & Company, which holds a 9.4 percent stake, decided just on Monday to vote in support of the leveraged buyout, a person with direct knowledge of the matter said.
The Price fund, which gets five stars and a gold rating, the highest on both scales, holds domestic and foreign stocks and conventional bonds, along with convertible bonds, preferred stocks and leveraged loans.
It now holds $31.8 billion in residential mortgages, down from $32.1 billion in the first quarter last year; $36.1 billion in commercial mortgages, down from $38.9 billion; and $28.7 billion in leveraged loans, down from $35.8 billion.
The company's 2007 leveraged buyout always held more promise than most other debt-inflated deals of the era.
What investors focus on, in fact, is profitability, and they offset the risk of purchasing stock in a leveraged company by holding safer investments in their portfolios.
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