Carlyle's fixed-income woes continue
The August Carlyle Group, best known as a private equity outfit (a good one), is having some trouble with one its fixed income funds. According to Financial News Online, the firm has told clients that the business model was designed so that the fund could weather a long-term Capital Management-like shock. It also said the current carnage was "significantly worse." Whew! That puts it in perspective right there. The fund has already drawn down a $100 million loan and just received a second bailout loan. Most fixed-income funds are in similar straits. Stay tuned.
For more:
- here's the Financial News Online article
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