Nothing specific...just that it’s going to be bad
Fortunately, we are entering the crisis with our banking system well capitalized, and the stimulus/Fed seem to be focused on keeping the banking system healthy to lead the recovery out the back end. But one scary anecdote: I am involved with a PE bohemoth in your back yard...last week they sent a directive out to all of their portfolio companies to fully draw down their revolvers to ensure liquidity. that’s hundred of companies...probably thousands if you count their credit funds...it’s public now, and I believe Blacstone has issued the same directive...friends at money center banks are watching this closely, and I’ve been told there is ample liquidity to accommodate a broader wave of drawdowns across corporates, but it does make me nervous how tight it’s going to be with a wave of defaults coming.
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In response to this post by WahooRQ)
Posted: 03/26/2020 at 11:35AM