Re: Carlyle faces more margin calls

"Charles "the baby crusher" Paisley" <ajames54@[EMAIL PROTECTED]
> wrote in
message 
news:735ce5a9-642d-44a6-8ef7-bb6d8458bad0@[EMAIL PROTECTED]
> On Mar 8, 1:24 pm, "John Galt" <whoisjohng...@[EMAIL PROTECTED]
> wrote:
>> "Uncle_vito" <uncle_vito2...@[EMAIL PROTECTED]
> wrote in message
>>
>> news:UcadnfWyfaAlI0_anZ2dnUVZ_oSunZ2d@[EMAIL PROTECTED]
>>
>> >I cannot believe these IDIOTS used margin.  I guess they were trying
to
>> >JUICE their returns.  My financial advisor said never to use margin.
>>
>> > These idiots are not using their money so they do not care.  They are
>> > investing your and my money so they do not care if they default.
>>
>> > Vito
>>
>> Every private equity firm is margined 50/50, more or less. This is only

>> the
>> first of the margin calls.
>>
>> JG
>>
>
> By 50/50 do you mean that half are levered or that all are levered on
> average 2:1?
> In either case your estimate is scary low..

I mean that at least they borrow a dollar for every dollar they invest. It

may of course be more.

JG

>
> According to Bloomberg, CCC raised approx 300 Million to fund 22
> Billion worth of Assets
> that is 73:1 leverage.. I keep waiting for the update to add a decimal
> place or a zero but I've not seen one so far. Private equity is
> nothing.. wait for the hedge funds to start to de-lever..