đź‘˝ ET Phone Loan đź‘˝
Hello friends, welcome back to this week’s post of HighlyLevered. I again wanted to take a second to thank all of our readers and new subscribers, as last week’s post was the most viewed post since launch!
I was moving this weekend, which, if you haven’t done in a while, is an absolute pain in the a$$. Every time I move, I tell myself I will never buy anything from Ikea ever again, and yet every time I move, I buy sh!t from Ikea. What a business, I bet it absolutely prints cash, I wonder how much used Ikea furniture is sold on OfferUp every day?
In any case, let’s get into the subject of this week’s post, which will be covering Credit Investing 101 which isn’t too different than Equity Investing 101, but we will get into that…
Credit Investing 101
Credit investing is structured on three fundamental pillars: (i) the underlying credit, (ii) the deal structure, (iii) and deal economics.
The “underlying credit” simply means the quality of the business or asset that is being invested in. For example, underwriting a loan to Netflix is much safer than underwriting a loan to Chuck E. Cheese, because the fundamental strengths of the underlying businesses are very different. Although both are forms of entertainment, Chuck. E Cheese is… well… you get the point.
