Thanks for another great thought-provoking piece. Hoping you address the latest developments of the depreciating Yen. It seems to me this time bomb isn't getting the exposure it deserves. I'm sure Doomberg can do it justice. :)
This was interesting. I’ve never dug into Softbanks financials but I’d be curious to understand how their auditors got comfortable marking to what read as a purely insider round. The guidance in the AICPAs Accounting and Valuation Guide regarding the Valuation of Portfolio Company Investments of VC, PE and Other Investment Cos advises against blindly marking to insider rounds and generally considers an arms-length transaction (indication of fair value) to be led by new 3rd party professional investors. Accounting chicanery?
Yep, this describes perfectly the dynamic where a fund, faced with redemptions is forced to sell its best assets to meet them, which is what happened in the GFC. Interestingly Coatue has decided this time to segregate public/private (and gate the private). Nonetheless, if panic takes root, public securities will get taken to the woodshed as things snowball.
This looks very dicey to me given the Fed may be forced to withdraw liquidity quite sharply. The market right now thinks the Fed is trapped (which it is), but there are no guarantees there won't be a policy mistake or three in the coming months.
long YANG?
Just subscribed, just figuring out how to use Substack and just found this article. Brilliant as usual. Thank you!
Somehow, Masa went to the highest-growth VC market in the world and found the biggest lemon.
Now do all the biotech hedge funds that are up to their eyeballs in cash incinerating privates that haven’t even optimized a lead molecule.
Everyone is just following the Federal Reserve math.
4 squared
A house of cards waiting to collapse
Anything is possible when the value (number) of the value ($) isnt worth the value (paper) its printed on.
Old PM's curse: When you can't sell what you want to, sell what you can.
Here is that FT link - https://www.ft.com/content/24c4a8a8-7885-11e9-bbad-7c18c0ea0201
The FT reported a couple of years ago that Softbank was more than 50% of the Japanese retail corporate bond market. Not sure if this remains true.
Thanks for another great thought-provoking piece. Hoping you address the latest developments of the depreciating Yen. It seems to me this time bomb isn't getting the exposure it deserves. I'm sure Doomberg can do it justice. :)
This was interesting. I’ve never dug into Softbanks financials but I’d be curious to understand how their auditors got comfortable marking to what read as a purely insider round. The guidance in the AICPAs Accounting and Valuation Guide regarding the Valuation of Portfolio Company Investments of VC, PE and Other Investment Cos advises against blindly marking to insider rounds and generally considers an arms-length transaction (indication of fair value) to be led by new 3rd party professional investors. Accounting chicanery?
Yep, this describes perfectly the dynamic where a fund, faced with redemptions is forced to sell its best assets to meet them, which is what happened in the GFC. Interestingly Coatue has decided this time to segregate public/private (and gate the private). Nonetheless, if panic takes root, public securities will get taken to the woodshed as things snowball.
This looks very dicey to me given the Fed may be forced to withdraw liquidity quite sharply. The market right now thinks the Fed is trapped (which it is), but there are no guarantees there won't be a policy mistake or three in the coming months.
superb! have shared, and shared, and shared. so much of this market is manipulated...omg. thanks again, great insights.
Great Insights. Thank you