Magic Markets #53: Bad Balance Sheets

In Episode 53 of Magic Markets, we kicked things off with a brief discussion on Jerome Powell (who is now apparently considered “hawkish”) and the Turkish Lira, which is rather broken.

We then moved from fiscal balance sheets to company balance sheets. In particular, we explored what happens when bad balance sheets happen to good people.

In the aftermath of the pandemic, we’ve seen companies struggle with unsustainable debt. In some cases, this is an opportunity for large new equity investors or existing anchor shareholders to increase their stakes at a depressed valuation.

By working through examples like Tongaat, Brait and EOH, we show how important the balance sheet can be.

Magic Markets is your invitation to be part of our discussions on macro themes and company-specific news in the markets.