2009-09-16wsj.com

Blackstone expects between $500 billion and $1 trillion in upcoming company defaults, a range that puts the next distressed cycle "four to eight times" larger than the one in 2001 and 2002.

"That will provide a lot of credit opportunities," James said. Blackstone's credit hedge-fund, GSO Capital Partners, will invest in many of those situations.

While the company does have a lot of money to invest, James said that of the $41 billion it's currently investing, Blackstone has written down 50% of its real-estate holdings compared to their original cost, and 30% of its private-equity holdings. Credit investments, on the other hand, have been marked up 30% from its cost.

Still, the fact that Blackstone still has so much money to deploy shows how cautious it's being.



Comments:

catherine at 11:11 2009-09-16 said:
:roll: :roll: sure, 500 billion - 1 trillion dollar losses have BEEN TURNING INTO 2-3 TRILLION THE LAST TWO YEARS, HASN'T IT?

The way property is tanking I think I was too easy when I said there would be a 50% drop in values - I think it could be going somewhere near 70-80% in some areas..............

SO JUST WHEN IS PROPERTY GOING TO BE A DEAL AGAIN..................like the depression, probably around 2020

so this company thinks we are at the bottom AND WILLING TO INVEST YOUR MONEY INTO THAT POT....................BIG MISTAKE...........

JOBS HAVE TO COME FIRST INVESTORS...............JOBS FIRST THAN HOUSE RAMP UP.................

it is one thing to BRAG that employment is a lagging indicator

AND SMILE ABOUT THIS JOBLESS RECOVERY :?

BUT ANOTHER THING WHEN YOU KNOW WITH THIS ADMINISTRATION'S POLICIES

THERE AIN'T A PART OF THE ECONOMY THEY AIN'T TANKING............NO JOBS IN SITE............NOT EVEN BEING TALKED ABOUT......

too bad if you are ready for new tires..............THE UNIONS SAY THEY NEED YOU TO PAY MORE FOR THEM TO GET WELL.............and I am sure they are going to stop at tires...........Right? Permalink

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