marazul Posted April 11, 2016 Share Posted April 11, 2016 In this new ZIRP/NIRP world opportunities are scarce. One area I have been looking at is companies that have the ability to take advantage of this low interest rate environment. These type of companies usually have stable revenues that permits them to lever to 3-5x EBITDA. We are left with a capital structure similar to a PE owned company. The pros of this strategy is that debt is very cheap and good results can amplify returns. On the other hand, leverage works both ways. However, this seems to be an area of opportunity in this environment. Any thoughts on this? Any good names you would like to share? A good example might be Liberty Global or SCI. Link to comment Share on other sites More sharing options...
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