Principal Component Analysis of Contagion Spread in 2008 vs 2020

We examined multiple likely causal reasons that in combination exacerbated the 2008 crisis in the United States. Our analysis removed the “least important” variables and left us with four variables with high explanatory power – decline in home prices, a doubling in oil and higher energy prices, wealth destruction in equity markets and large reduction in credit availability. We do not see this combination of factors during 2020.

Compensation Provisions LBO – Management Participation in Equity

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ActiveAllocator Research – We draw attention to management compensation, retention, severance provisions in private equity buyouts and private equity deals – a subject of much curiosity, but has been largely kept under wraps for a long time. Follow our blog over the next week for a daily update on this topic.