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Companies issuing junk bonds are rarely using the proceeds to make big acquisitions or invest in new businesses.
Media conglomerates lack the confidence to make big acquisitions, after the last wave of deals went wrong.
"Even the biggest and most stable telecommunications companies are hard pressed to make big acquisitions right now," said Anthony Klarman, a debt analyst at Deutsche Bank.
Even though Mr. Diller currently enjoys unfettered day-to-day management control at USA, he requires approval from his major shareholders to make big acquisitions.
The chairman of Deutsche Telekom, Ron Sommer, has repeatedly said he wants to make big acquisitions and that the United States is a top priority.
On each count, Macquarie is vulnerable.Since fees are tied to the size of assets, it makes sense to raise lots of money, pile debt on top of it, and make big acquisitions.
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Nomura, Kirin, Toshiba and others have made big acquisitions abroad in recent years.
Until now, the company has not sought to grow by making big acquisitions.
And the focus of Telecom Italia's new chairman, Marco Tronchetti Provera, is on reducing debt, not on making big acquisitions.
Over the years, Mr. Weill built his empire by making big acquisitions and then wringing out costs.
At the same time, few executives have been more outspoken in public about their lust for making big acquisitions -- particularly in the United States.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com