Recalling the collapse of British and Commonwealth and Coloroll, both of whom collapsed under the weight of leverage as interest rates rose, was soon followed by the book ‘Accounting for Growth’ by P&D analyst Terry Smith which was another takedown of the delusions of bull market corporate management which the late Tony Dye spotted far too early for a UK fund manager to successfully exploit
Seems to me that whilst history may not repeat itself, it does echo loudly and the biggest rug pull of all, as the fiat money system created by central banks approaches its day of reckoning following interest rate rises and something vaguely resembling a move back towards a proper risk premium for money
Recalling the collapse of British and Commonwealth and Coloroll, both of whom collapsed under the weight of leverage as interest rates rose, was soon followed by the book ‘Accounting for Growth’ by P&D analyst Terry Smith which was another takedown of the delusions of bull market corporate management which the late Tony Dye spotted far too early for a UK fund manager to successfully exploit
Seems to me that whilst history may not repeat itself, it does echo loudly and the biggest rug pull of all, as the fiat money system created by central banks approaches its day of reckoning following interest rate rises and something vaguely resembling a move back towards a proper risk premium for money
Accounting for Growth was a bible in my early days as an analyst.
I took it to Malaysia and lo and behold found the same accounting tricks being played there. Convertible bonds with no sinking fund.
I wonder if the problems will emerge in the private credit market. I'm watching these synthetic PIKs designed to maximise private lenders' fees.