Trade Notes: buy Louis Dreyfus?

This is a much older story, first breaking in late September that has since gone into silent mode — probably as the deal-making is done or is killed by the majority owner.  Essentially, the 150-year old trader Louis Dreyfus Commodities is hoping to reinvent itself from a flow-trader agency trading commodities to someone who can bet its own balance sheet.  Continue reading “Trade Notes: buy Louis Dreyfus?”

Trade Notes: Start Trawling for Macquarie Assets Disposals?

Source: Wilkinson Architects

Hard assets that pay reliable income are a pretty good idea at the best of times — especially if you’re not the greedy kind of investor — but right now, they are a bloody good idea.  Gross and El-Erian’s “new normal” predicates the ownership of real assets with stable and secure income.  Factor in the possibility of Renee Haugeruud’s “inverse stagflation” entailing under-performing traditional paper assets — like stocks & bonds — and soaring real asset values and you get the picture. Continue reading “Trade Notes: Start Trawling for Macquarie Assets Disposals?”

Trade Notes: CQS’ Distressed Debt Fund

An assortment of United States coins, includin...
Distressed debt: picking up pennies on the dollar, sometimes in front of a bulldozer.

The idea of distressed debt investing is simple enough:  most of the time, debt is bought by institutional investors (otherwise known as long-only investors, or long money) in the hope that the steady (generally in the 6-10% annual) interest returns will be good enough for their long-term obligations.  Then, as the debt cycle gets more and more speculative, you have everyone and their grandmother (sometimes literally) piling in.  As the correction inevitably comes, borrowers can’t pay and lenders panic, and debt starts selling at a discount (i.e., if you are the unlucky owner of a dollar of debt, you want to get rid of it quickly, and are willing to sell at a discount, sometimes at pennies on the dollar).  That’s distressed debt. Continue reading “Trade Notes: CQS’ Distressed Debt Fund”