Buyout funds rethink deal financing amid shortage of debt

By Andres Gonzalez and Pablo Mayo Cerqueiro LONDON (Reuters) – Private equity funds are rethinking how they pull off large deals after a 40.4% contraction in global buyout activity amid a shortage of debt financing caused by rising interest rates and banks’ reluctance to open their money taps. Blackstone’s acquisition of Emerson’s Climate Technologies business…

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Retail investors turn to ETFs as recession fears knock down meme stocks

By Medha Singh (Reuters) – Retail investors are doubling down on Exchange Traded Funds (ETFs) as rising interest rates and volatile markets curb their appetite for risky assets such as meme stocks, SPACs and cryptocurrencies. Global financial markets have taken a beating as central banks try to combat runaway inflation with aggressive rate hikes, thereby…

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Analysis-Britain takes fight to restore investor faith into 2023

By Sinead Cruise, Kate Holton and Dhara Ranasinghe LONDON (Reuters) – Major investors are rethinking their support for Britain’s economy following months of political turmoil and persistent Brexit uncertainties, as experts predict its recovery from a global recession will be slow and painful. While governments worldwide are grappling with high inflation and low growth, UK…

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For bear stock pickers, 2023 is full of rich pickings

By Nell Mackenzie LONDON (Reuters) – Well-known activist short-selling hedge funds expect to find more companies squeezed by tough economic conditions in 2023, potentially increasing instances where balance-sheet sinkholes are hidden. Some $321 billion worth of U.S. and European speculative-grade debt is due for refinancing over the next 12-14 months. Defaults may double in 2023,…

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Analysis-Investors bet Fed will blink if recession hits despite ‘higher for longer’ mantra

By Davide Barbuscia and David Randall (Reuters) – Some investors believe an expected recession will force the Federal Reserve to loosen monetary policy next year, even as the central bank projects it will raise rates higher than it previously anticipated and keep them there longer as it fights to crush inflation. The dynamic came into…

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