Credit Crunch Could Stall Private-Equity Deals

The end of easy credit is hitting private equity firms especially hard. These are companies that aren't traded on the stock market and have fewer regulations — such as government-mandated earnings reports. They often produce huge returns, buying other companies on the cheap, hoping to sell them later for a profit.

Philip Coggan, capital markets editor for The Economist, talks with Andrea Seabrook about the effects of worries about defaults on private equity acquisition.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Support comes from: