peHUB Second Opinion 9.26.08

WSJ: The economy will certainly be on the table at tonight’s presidential debate, despite it’s slated foriegn policy focus. We know neither candidate is particularly amazing when it comes to economic topics, and we know that neither of them had much time to prepare on debating the economy. That could bode well for the stronger debater (McCain), or for the one seen as stronger on the economy (Obama). And for that, I am even more excited.

FT Alphaville: Of course there is a religious group that saw this crisis coming a million years ago.

Night of the Living PR disasters: In a further potential blow to Sun Capital and Cerberus, Mervyns (you know, their bankrupt portfolio company that they made money on) won approval to hire a forensic financial accountant to investigate whether Sun and Cerberus’s LBO of the company was the cause of its bankruptcy. Sun and Cerberus call the deal “overheated rhetoric and hyperbole” and “speculative,” LBO Wire reported. Personally I’m shocked they haven’t settled out of court somehow yet. Even if the bondholders (who are behind this suit) have no case, the bad press alone seems to be enough to want to make this all go away.

S&P: says this is the highest level for its distressed debt ratios in six years. (Does that mean it’s too early for us to be making “Great Depression” calls?

Wall Street Journal: 3i reported its investments have dropped 39% for the first five months of the fiscal year.

Bloomberg: Guy Hands, considered by some the shock jock of private equity, is predicting ya’ll are about to take a 75% paycut, based on an ownership period that’s twice as long as you’re used to, going forward, Bloomberg writes. Columnists at Financial Times agree that fees should come down, but disagree with Hands’ suggestion that the PE pay structure is faulty.

BusinessWeek: And the ratings agency reccommended a “strong buy” for JPMorgan Chaseon WaMu.