Jester’s Court update e-mail from Fool.com.
The JC this week focuses on another acronym: PE. According to Slate.com, private equity firms have started buying up their own debt at significantly reduced prices. As the author explained, it works a little like this:
You pay your friend a few dollars so that you can host a small party while she’s out of town. You leave the pool filled with garbage, beer cans, and human waste. The next day you show up dressed as a pool cleaner and charge your friend a few bucks to mop up the mess you made.
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