Hedging failure exposes private equity to interest-rate surge

Bloomberg/Silas Brown, Abhinav Ramnarayan and Paula Seligs/6-20-2023

photograph of a row of matches about to catch fire one by one

“Yet for all their savvy dealmaking, even the titans of private equity are getting caught out by the swift rise in interest rates — which is costing the companies they own billions in extra interest and threatens to push scores of them into default.”

USAGOLD note: Yet another sector facing the prospect of widespread default and imposing risks on the rest of the financial system…… Consider that their interest cost quintupled over the past 18 months.

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