"On 17 Mar 2010 you presented an article by Nelson Schwartz for the New York Times, which stated that "U.S companies will need to refinance $700 billion coming due from 2012." The article referred to Private Equity firms that acquired companies, particularly in 2007 before the bursting of the property bubble and consequent fall-out in banking, etc. For example, "Realogy, which owns real estate franchises like Century 21 and Coldwell Banker, was taken private by Apollo in the spring of 2007 just as the housing market was beginning to unravel and as the first tremors of the subprime crisis were being felt."

"Given what has happened since the article was written have you any insight into how successful any of these PE firms have been or will be at re-financing this year? Alternatively is it possible to investigate through the collective wisdom of your readers how such re-financing is progressing and whether its success or failure will have an impact on the already weakened financial and economic state of affairs that exists world-wide?

"Could failure be the straw that breaks the proverbial camel's back?

David Fuller's view Thanks for reminding us and here is the link to that article and my comments at the time.


I have not seen anything on this refinancing recently but will certainly keep an eye out for it. It is hard to imagine that this will not be a problem for the bond market and if so, we can be sure that the Fed is aware of the situation. It is another reason to be wary of bonds and for favouring shares that are Dividend Aristocrats, while also expecting some market turbulence as we are now seeing.

If anyone in the Collective has more specific information on this refinancing we would welcome your insights.