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Posts Tagged ‘Credit’

Facebook struggled to raise equity, so the equity cult is dead, says the FT. Really!?

So the FT think that Facebook struggled to raise equity? Funny, I thought the raising part went very well. It was the trading part that broke down. FB managed to raise $16bn at $38, or 65x earnings. I call that a success. I think Mark and his bankers do to.

John Authers and Kate Burgess argues in today’s FT that the six decade equity cult is dead and that bonds will now seriously take over as the investment of choice. The FT continues to say that companies don’t issue equity anymore but raise cash through the credit markets instead because equity financing is too expensive. It think the FT needs a little Finance 101.

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