The private equity industry is in a position to help the economy recover from the coronavirus pandemic by investing in growing companies, helping them add employees, increasing capacity with their supply chains, investing in critical infrastructure systems and improving the communities they serve. … READ MORE >
Covid-19
Retail sales declined 8.7% in March, with more distress to come
The condition of the American consumer is impaired and will be for some time. The combination of soaring unemployment and shelter-in-place policies across the economy sent U.S. retail sales down 8.7% in March. … READ MORE >
Companies tap $247.5 billion in loans under Paycheck Protection Program
Small to midsize business seeking relief from economic woes due to the Covid-19 pandemic have tapped $247.5 billion from the government’s Paycheck Protection Program through April 13, according to data released by the Small Business Administration on Tuesday. … READ MORE >
How business development companies can weather the coronavirus downturn
The stock prices of business development companies, which invest in small and midsize companies along with distressed enterprises, have experienced the sharpest and fastest decline since the financial crisis of 2008-9. Still, BDCs may ultimately have a better chance of weathering the storm without suffering the depression-level shocks that seem to have been priced into their stock prices. … READ MORE >
What lenders know about the Main Street Lending Program, and the questions that remain
Within moments of the announcement of the Main Street Lending Program, many lenders began to pour through the term sheets published by the Federal Reserve. While some answers were provided, further details are needed. Here is what we know. … READ MORE >
Amid disruption in health care, private equity is poised to put its cash to work
As the world approaches 1.5 million confirmed coronavirus cases and more than 80,000 deaths, the financial and operational toll of quarantine efforts will create opportunities for both strategic and financial buyers across industries, including health care. … READ MORE >
When to reopen the economy? Beware of a false optimism surrounding coronavirus.
The outbreak of the coronavirus surpassed 450,000 reported cases of infection and 1,900 deaths per day in the United States. Our RSM model of the Covid-19 spread extrapolates a half million infections and more than 15,000 deaths by this coming weekend. … READ MORE >
State-by-state initial jobless claims show the spread of the coronavirus
The latest initial jobless claims report shows that layoffs of employees were lower in some of the already hardest-hit states, but were widespread nonetheless. … READ MORE >
The perfect storm: Tough times ahead for the U.S. shale industry
Several factors pose challenges specifically for producers of U.S. shale, which has for years been a leader in the march toward energy independence for the country. … READ MORE >
Fed sets up $2.3 trillion in liquidity commitments, introduces Main Street Lending Program
The Federal Reserve made history on Thursday by moving aggressively to provide up to $2.3 trillion in liquidity commitments to support the economy. This policy intends to bolster households, small and medium-sized firms, and the ability of state and local governments to float debt to ensure critical services during the pandemic. … READ MORE >