Third Moment Consulting

Alarming data from the leveraged loan market prompts, again, the question — why aren’t such loans viewed as securities?

I share some thoughts on the SEC with Dr. Scott Baugess — a faculty member at the McCombs Business School at the University of Texas, a former Deputy Chief Economist at the SEC – as well as on the SEC’s funding model, and the constraints that model, including constraints on its ability to conduct effective…

In the latest test of whether investors are willing to give their money to strangers without getting even basic information in return, Evergrande has defaulted on its debt, per Fitch, but neither the company nor China’s government will confirm or deny whether Fitch is right.

Klausner et al. survey the evidence. Conventional (non-SPAC) IPOs with 20+% price declines attract modestly more lawsuits than equivalently sized already-public companies with 20+% stock price drops attract 10b-5 lawsuits (18% vs. 13%). The resulting IPO lawsuits are also dismissed less frequently, although at a higher rate than the strict liability scienter standard in Section…

Charlie Munger on crypto.