Barry Ritholtz

MARCH 5, 2024

What happened over the last year and a half or so is rates went up and valuations went down. But in our experience, we’re seeing them efficiently transfer the credit risk of assets, but keeping the customer relationship, it’s a very important distinction. This is their hedge to credit risk.

Mergers and Acquisitions (M&A) 56

Mergers and Acquisitions (M&A) Credit Risk Investments Banking 56

Barry Ritholtz

AUGUST 29, 2023

And you had to take on significant duration risk and credit risk just to earn a couple percentage points. DAVIS: Where international equities, because of valuations, probably 7% to 7.5%. RITHOLTZ: So let’s talk about that, because that gap in valuation has persisted for a long time. RITHOLTZ: Right.

Investments 52

Investments Benchmarking Valuation Construction 52

Barry Ritholtz

AUGUST 15, 2023

The challenge is unlike the S&P 500, hedge funds sit in a box that has underlying credit risk from prime brokers. So the credit markets froze. What’s the valuation? It’s just entertainment. What’s keeping you entertained during lockdown? RITHOLTZ: And that was problematic.

Benchmarking 52

Benchmarking Investments Marketing Treasury 52

Barry Ritholtz

FEBRUARY 13, 2023

But there are so many tools at your disposal, and let alone how much duration you’re taking, how much interest, how much credit risk you’re taking, illiquidity, et cetera. And how do you make the decision, I’m not comfortable with this credit risk relative to the return it’s going to throw off?

Mergers and Acquisitions (M&A) 56

Mergers and Acquisitions (M&A) Investments Marketing Education 56

Barry Ritholtz

SEPTEMBER 26, 2023

But at the end of the day, the companies we invest in are bottoms up or based on bottoms up credit analytics that we have the conviction and we’ll return par plus accrued through through a cycle. And if they don’t, we’re happy to own them at the valuation that we are creating that company act.

Investments 52

Investments Economics Banking Construction 52

Barry Ritholtz

MARCH 12, 2024

And up until that moment in time, we didn’t spend a lot of time on credit risk in mortgages. We didn’t really have to model credit risk because that was, that risk was taken by the agencies. But in these private labels, you had the, the market was taking the credit risk.

Profit and Loss 56

Profit and Loss Investments Marketing Securities 56

Barry Ritholtz

DECEMBER 20, 2022

It’s just a fascinating conversation about looking at the world from both bottoms up and top-down, as well as thinking about what valuations are like, how likely are macro events, the impact you’re getting not just the return on capital, but as famously said in fixed income, a return of your capital. But that’s very helpful too.

Restructuring 60

Restructuring Investments Marketing Banking 60