Lunchtime Links 10-5
Buyout firms profited as a company’s debt soared (NYT) Good piece. Shows how private equity/leveraged buyouts can end up as nothing more than looting operations. To be sure, someone has to be stupid enough to buy bonds that fund special dividends for private equity owners. They end up losing, as they should. But so does the company in question.
Borrowing for Dividends raises worries (WSJ) Liz Rapaport files a timely story in light of the above. Reason #256 that we’ve learned nothing from the financial crisis. Our own Agnes Crane blogged on this last week. It is just one company. But with corporate issuance on fire, it’s probably only a matter of time before more companies raise money to pay special dividends or buy back stock.
Condé Nast to close 4 magazines (Media Decoder)
The Puma Index (Slate, ht DH)
BofA: How much should bond holders be haircut to restore solvency? (Chris Whalen, ht JPM)
Mahmoud Ahmadinejad revealed to have Jewish past (Telegraph, ht Marco) Caveat emptor here: It would be nice if the column had the close-up of the photo they say confirms their theory.
FTC: Bloggers must disclose payments for reviews (AP) Or face an $11k fine. Ouch!
Caught 1.5 miles offshore while fishing (animaltalk.us)