Easy money
Duncan Sankey on why we should take LBO statistics with a pinch of salt
Everybody likes easy money. In the first instance, it equates to easy profits, since a surging tide of liquidity lifts all credit boats, no matter how holed they might be under the waterline. Easy liquidity exerts a corollary beneficial effect on the corporations themselves, which enjoy ample cash and relaxed access to bank lines. Thus, even if a company suffers serious operational failings, it might well still be able to meet its obligations thanks to its cash reserves and/or the banks'
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