Thursday, June 28, 2007

This WSJ.com article gave me some flashbacks to what some people have been saying for a while now:

Market's Jitters Stir Some Fears For Buyout Boom

If you take a look at the graph halfway down the page, the sheer magnitude of the present day buyout deals was what was surprising to me when you compare them to junk bond deals of the late 1980s. For those of you in WEMBA Class 32, I had a flashback to Prof. Percival's finance class last term when he was talking about this exact issue, as well as to a Knowledge at Wharton podcast on the same subject.

We're living through an interesting time while studying finance at the most sophisticated b-school in the world, and it will be interesting to see what happens to the buyout boom over the next few months. I also saw that recently IPO'd Blackstone just fell 2.7% yesterday to $29.92, below it's IPO price of $31/share. Let's see if KKR continues down the initial public offering path. Prof. Tyson must be working his retailer over, assuming he got it in writing as usual.

BTW, here's a link for the Knowledge at Wharton podcast channel in iTunes:
itpc://knowledge.wharton.upenn.edu/podcastcurrent.xml

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