Finance

Signage outside Intel headquarters in Santa Clara, California, on Monday, Jan. 30, 2023.
David Paul Morris | Bloomberg | Getty Images

Check out the companies making headlines before the bell.
Intel — Shares popped 6.7% after the chipmaker posted better-than-expected second-quarter results and a return to profitability after two consecutive losing periods. Intel’s forecast for the third quarter also came in above analyst expectations. The company reported adjusted earnings of 13 cents a share on revenues of $12.95 billion.

related investing news

an hour ago

Roku — The streaming stock rallied nearly 10% after reporting a narrower-than-expected loss for the second quarter. Roku reported a loss of 76 cents a share and revenues of $847 million. Analysts polled by Refinitiv had anticipated a loss of $1.26 per share and $775 million in revenue.
Biogen — Biogen shares moved slightly lower after the biotechnology company said it’s acquiring Reata Pharmaceuticals for $172.50 per share, in a cash deal valued at about $7.3 billion. Shares of Reata soared more than 51% on the news.
Procter & Gamble — The consumer giant saw shares rise more than 1% in premarket trading after the company reported quarterly earnings and revenue that beat analysts’ expectations. However, P&G released a gloomy outlook for its fiscal 2024 sales that fell short of Wall Street’s estimates.
Exxon Mobil — Shares moved slightly lower after the oil stock posted mixed second-quarter results. The company reported earnings of $1.94 a share, excluding items, that fell short of the $2.01 expected by analysts, per Refinitiv. Revenues came in at $82.91 billion, above the expected $80.19 billion.
Chevron — The oil stock lost nearly 1% even after reporting a beat on the top and bottom lines for the second quarter. Earnings fell from a year ago due to a drop in oil prices.

First Solar – Shares soared 12% after the solar company posted earnings per share of $1.59 on revenue of $811 million for the second quarter. Those results beat Wall Street expectations of 96 cents per share on revenue of $721 million, according to Refinitiv. The company also announced plans to invest up to $1.1 billion to build a fifth manufacturing facility in the United States.
Enphase Energy – Shares of Enphase dropped more than 15% after the company posted second-quarter revenue Thursday of $711 million that fell short of analyst estimates of $722 million, according to Refinitiv. The stock also faced a wave of downgrades Friday morning from Deutsche Bank, Wells Fargo and Roth MKM.Sweetgreen – Shares of the salad chain slid more than 13% after the company posted weak sales that missed Wall Street expectations in the second quarter and a net loss of $27.3 million, or 24 cents per share. Sweetgreen did say it’s aiming to turn a profit for the first time by 2024.Ford Motor – The automaker said adoption of electric vehicles is going more slowly than the company forecast and that it expects to lose $4.5 billion on the EV business this year, widening losses from roughly $3 billion a year earlier. Otherwise, Ford posted strong quarterly earnings that beat Wall Street expectations and raised its full-year guidance. Shares were flat in premarket trading.
Juniper Networks — Shares of the technology company fell 8% after Juniper’s third-quarter guidance came in lighter than expected. The company said it expects earnings per share between 49 cents and 59 cents, with revenue between $1.34 billion and $1.44 billion. Analysts had penciled in 62 cents per share and $1.48 billion of revenue. The company’s second-quarter results did come in slightly above expectations.
AstraZeneca — U.S. listed shares of the drugmaker added more than 5% before the bell. The U.K.-based company reported second-quarter earnings of $2.15 per share on $11.42 billion in revenue. That surpassed the EPS of $1.95 expected by analysts polled by Refinitiv on revenues of $11.03 billion. AstraZeneca also said it would buy a portfolio of preclinical rare disease gene therapies from Pfizer for up to $1 billion.
Xpeng — The Chinese electric vehicle stock jumped more than 6% in the premarket. Jefferies upgraded shares to a buy from a hold, citing Xpeng’s joint development plan with Volkswagen
New York Community Bancorp — The regional bank stock rose about 2% before the bell after JPMorgan upgraded New York Community Bancorp to an overweight rating from neutral. The Wall Street firm called the company a “massive market share taker” in its upgrade.
Mondelez International — Mondelez International added 2.7% before the bell on strong second-quarter results. The snack maker on Thursday reported earnings of 76 cents a share, excluding items, on $8.51 billion in revenue. Analysts polled by Refinitiv had estimated EPS of 69 cents and revenues of $8.21 billion.
— CNBC’s Tanaya Macheel, Yun Li and Jesse Pound contributed reporting More

On July 28th the Bank of Japan (boj) took markets by surprise. At the end of a two-day policy meeting Ueda Kazuo, the central bank’s governor, announced an unexpected change to its increasingly expensive policy of yield-curve control. The boj raised its cap on ten-year government-bond yields, which it defends with regular and sometimes vast purchases, from 0.5% to 1%. Ten-year yields climbed to around 0.57% after the announcement, the highest in nearly a decade. Surging inflation over the past two years has led central banks around the world to raise interest rates forcefully. Japan’s central bank has been a stubborn outlier, keeping most of its monetary-stimulus measures—including negative interest rates and aggressive bond purchases—firmly in place. All told, the boj’s ultra-low interest-rate regime, introduced in an attempt to boost the country’s sluggish rate of economic growth and prevent outright deflation, has now been active for a quarter of a century. Tweaking yield-curve control is not quite an abandonment of the regime. It does, however, set the country on course for higher rates.Under yield-curve control, the boj buys government bonds when yields approach the stated cap—pushing yields, which move inversely to bond prices, back down. The approach has been in place since 2016, when it was introduced as an alternative to huge asset purchases, which were distorting the bond market. In the past year the policy has come under pressure as inflation has soared worldwide. In January the boj was forced to make enormous bond purchases—surpassing ¥13trn ($100bn) in one week—in order to defend the policy. Hedge funds have short-sold government bonds, expecting that the boj eventually will have to abandon the policy. Every extra boj bond purchase increases eventual losses on the central bank’s portfolio should yields eventually rise. And with the boj owning vast amounts of government bonds, there are few left for others to trade, leaving the market increasingly illiquid. Most economists had therefore expected the boj to eventually junk or tweak the policy, though not until later in the year. The boj says that allowing a wider trading range will bring flexibility, allowing the bond market to function better, whichever way the economic winds blow. The central bank also said that it would be “nimbly conducting market operations” when the ten-year yield was between 0.5% and 1%. The central bank seems to be giving itself wriggle room to buy bonds, even if yields do not bump up against the new upper bound. In doing so, it risks causing confusion about its goals.Despite the boj’s insistence that the change to yield-curve control is not an act of monetary tightening, any loosening of the band inevitably means higher market interest rates, since yields were already bumping up against the previous cap. Even if the boj does not want to fire the starting gun on a cycle of tighter policy, the move is “effectively akin to a rate hike”, as Naohiko Baba of Goldman Sachs, a bank, has written.For now there are few advocates of more aggressive tightening at the boj. But rate rises no longer look as unlikely as they did. Based on the price of interest-rate swaps, investors expect short-term interest rates to rise from -0.1% now to zero in a year’s time. Data released on July 28th showed core inflation (excluding fresh food and fuel) in Tokyo rising by 4% year-on-year in July, twice the boj’s target. What happens in the labour market will be crucial. Signs of broader pressures on wages are still limited, but the shunto, springtime wage negotiations, saw promises of the largest wage rises in three decades. Years of ultra-low interest rates have left Japan exposed to higher interest rates, whether market or official ones. The most obvious source of risk is the country’s government debt, which on a net basis ran to a staggering 161% of gdp last year, and which will become much more expensive to service. Despite low borrowing costs in recent years, the government already spends 7.4% of its annual budget on interest payments—more than it does on defence, education or public infrastructure. Higher interest rates for any sustained period would put huge pressure on Japan’s fiscal arithmetic.Thus the BoJ faces a balancing act. Backing away from its yield-control policies without sending yields surging will require immaculate communication. If inflation fades as the boj hopes, officials may just pull it off. But if price pressures are more sticky and sustained, then painful monetary tightening will follow. ■For more expert analysis of the biggest stories in economics, finance and markets, sign up to Money Talks, our weekly subscriber-only newsletter. More

China’s housing ministry has announced plans to make it easier for people to buy property.
They include easing purchase restrictions for people wanting to buy a second house, and reducing down payment ratios for first-time homebuyers, according to an article on the Ministry of Housing and Urban-Rural Development’s website.
“It seems to us that [the housing ministry] is quick in response this time and also gets bolder on relaxing property policies,” Jizhou Dong, China property research analyst at Nomura, said in a note Friday.

A residential complex constructed by Evergrande in Huai’an, Jiangsu, China, on July 20, 2023.
Future Publishing | Future Publishing | Getty Images

BEIJING — China’s housing ministry has announced plans to make it easier for people to buy property.
The news, out late Thursday, indicates how different levels of government are starting to act just days after Beijing signaled a shift away from its crackdown on real estate speculation.

related investing news

14 hours ago

14 hours ago

The planned measures include easing purchase restrictions for people wanting to buy a second house, and reducing down payment ratios for first-time homebuyers, according to an article on the Ministry of Housing and Urban-Rural Development’s website.
In an effort to reduce speculation in its massive property market, China has made it much harder for people to buy a second house.
Mortgage rates for the second purchase can be a full percentage point higher than for the first, while the second-home down payment ratio can skyrocket to 70% or 80% in large cities, according to Natixis.

The housing ministry article referred to comments from its minister Ni Hong at a recent meeting with eight state-owned and non-state-owned companies in construction and real estate.
Since it was a meeting at the central government ministry level, it did not discuss policies for individual cities, said Bruce Pang, chief economist and head of research for Greater China at JLL.

But he expects Beijing will encourage local governments to announce real estate policy changes that fit their specific situation. Pang also pointed out that including construction companies at the meeting emphasized their role in promoting investment and stabilizing growth.

Waiting on details

China has not yet announced formal measures for supporting real estate. However, top level leaders on Monday signaled a greater focus on housing demand, rather than supply.
On Tuesday, China’s State Taxation Administration announced “guidelines” for waiving or reducing housing-related taxes. It was not immediately clear what implementation would look like for home buyers.

We continue to expect the property sector rally to continue and advise investors to focus on beta names within the property sector.

Jizhou Dong

The readout of Monday’s Politburo meeting also removed the phrase “houses are for living in, not speculation,” which has been a mantra for Beijing’s tight stance and efforts to rein in developers’ high reliance on debt for growth.
“It seems to us that [the housing ministry] is quick in response this time and also gets bolder on relaxing property policies,” Jizhou Dong, China property research analyst at Nomura, said in a note Friday.
Given such speed, Dong expects markets are anticipating specific policy implementation in cities such as Shanghai or Guangzhou.

Read more about China from CNBC Pro

Hong Kong-traded Chinese property stocks such as Longfor, Country Garden and Greentown China traded higher Friday, on pace to close out the week with gains after plunging on Monday over debt worries.
“We continue to expect the property sector rally to continue and advise investors to focus on beta names within the property sector,” Nomura’s Dong said.
Those stocks include U.S.-listed Ke Holdings, as well as Hong Kong-listed Longfor and China Overseas Land and Investment, the report said, noting Nomura has a “buy” rating on all three.
“We still advise investors to stay away from weaker privately-owned developers.” More

3,760 Enphase microinverters will power the drying and storage of more than 50,000 tons of California rice at Strain Ranches in Arbuckle, California, Feb. 19, 2013.
Alison Yin | AP

Check out the companies making headlines in extended trading.
Intel — The technology stock jumped nearly 6% as investors cheered a return to profitability and better-than-expected guidance. Intel projected third-quarter adjusted earnings of 20 cents per share, compared with estimates of 16 cents per share, according to Refinitiv.

Ford — The auto giant added 1% after raising full-year guidance and beating expectations for the second quarter. Ford reported 72 cents in adjusted earnings per share on $42.43 billion, while analysts surveyed by Refinitiv estimated 55 cents earned and $40.38 billion in revenue.
Roku — Shares of the streamer advanced 8.5% following a better-than-expected quarterly report. The company lost 76 cents per share in the second quarter, a narrower loss than the consensus estimate of $1.26 compiled by Refinitiv. Roku’s revenue also came in better than anticipated, with the company posting $847 million against a $775 million estimate.
First Solar — The solar stock gained 6.6% after solidly beating Wall Street expectations in the second quarter. First Solar earned $1.59 per share and saw $811 million in revenue, while analysts surveyed by Refinitiv anticipated 96 cents earned per share on $721 million of revenue.
Enphase Energy — Enphase tumbled 12% after the solar stock gave a mixed financial report. The company said it earned $1.47 per share, adjusted, ahead of the $1.25 per share estimated by analysts, per Refinitiv. But revenue missed the consensus estimate by $11 million, coming in at $711 million.
Sweetgreen — The salad chain slid 7% after missing revenue expectations for the second quarter. The company reported $153 million while analysts polled by Refinitiv forecast $157 million.

Dexcom — The medical device stock rose 2% after delivering better quarterly earnings and forward guidance than Wall Street anticipated. The firm reported 34 cents earned per share, excluding items, on revenue of $871.3 million. Analysts polled by FactSet expected 23 cents per share and $841.2 million in revenue. Dexcom raised full-year revenue guidance to between $3.5 billion and $3.55 billion, while the average analyst predicted $3.5 billion.
T-Mobile — The telecommunications stock shed 1.6% on a mixed earnings report for the second quarter. T-Mobile earned $1.86 per share, above the analyst consensus estimate of $1.69, per Refinitiv. But revenue came in weaker than expected, with T-Mobile reporting $19.2 billion despite Wall Street forecasting $19.31 billion.
Boston Beer — Shares climbed 9% after the alcoholic beverage company reaffirmed guidance for the full year and gave a strong quarterly report. Boston Beer posted $4.72 in earnings per share on $603 million in revenue, while analysts polled by Refinitiv expected $3.43 per share and $593 million in revenue. More

U.S. regulators on Thursday unveiled a sweeping set of proposed changes to banks’ capital requirements to address evolving international standards and the recent regional banking crisis.
While the heightened requirements apply to all banks with at least $100 billion in assets, the changes are expected to impact the biggest and most complex banks the most, the regulators said.

Michael Barr (L), Vice Chair for Supervision at the Federal Reserve and Martin Gruenberg, Chair of the Federal Deposit Insurance Corporation (FDIC), testify about recent bank failures during a US Senate Committee on Banking, House and Urban Affairs hearing on Capitol Hill in Washington, DC, May 18, 2023. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)
Saul Loeb | Afp | Getty Images

U.S. regulators on Thursday unveiled a sweeping set of proposed changes to banks’ capital requirements to address evolving international standards and the recent regional banking crisis.
The changes, designed to boost the accuracy and consistency of regulation, will revise rules tied to risky activities including lending, trading, valuing derivatives and operational risk, according to a notice from the Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.

related investing news

2 days ago

Long expected by banks, the proposed rules seek to tighten regulation of the industry after two of its biggest crises in recent memory — the 2008 financial crisis, and the March upheaval in regional lenders. They incorporate parts of international banking regulations known as Basel III, which was agreed to after the 2008 crisis and has taken years to roll out.
The changes will broadly raise the level of capital that banks need to maintain against possible losses, depending on each firm’s risk profile, the agencies said. While the heightened requirements apply to all banks with at least $100 billion in assets, the changes are expected to impact the biggest and most complex banks the most, they said.
“Improvements in risk sensitivity and consistency introduced by the proposal are estimated to result in an aggregate 16% increase in common equity tier 1 capital requirements,” the regulators said in a fact sheet. Tier 1 common capital levels measure an institution’s presumed financial strength and its buffer against recessions or trading blowups.

Long phase-in period

Most banks already have enough capital to meet the requirements, the regulators said. They would have until July 2028 to fully comply with the changes, they said.
The KBW Bank Index dipped less than 1% in midday trading; the index has fallen 11% this year.

Further, in response to the failure of Silicon Valley Bank in March, the proposal would force more banks to include unrealized losses and gains from certain securities in their capital ratios, as well as compliance with additional leverage and capital rules.
That effectively eliminates a regulatory loophole that regional banks enjoyed; while larger firms with at least $250 billion in assets had to include unrealized losses and gains on securities in their capital ratios, regional banks won a carve-out in 2019. That helped mask deterioration in SVB’s balance sheet until investors and customers sparked a deposit exodus in March.

Higher standards

The changes would also force banks to replace internal models for lending and operational risk with standardized requirements for all banks with at least $100 billion in assets. They would also be forced to use two methods to calculate the riskiness of their activities, then adhere to the higher of the two for capital purposes.
“Today’s banking system has more large and complex banks than ever to support our dynamic economy,” acting OCC head Michael Hsu said in a statement. “Our capital requirements need to be calibrated to this reality: providing strong foundations for large banks to be resilient to a wide range of stresses today and into the future.”
Regulators have invited commentary on their proposal through Nov. 30; banks and their interest groups are expected to push back against some of the new rules, saying they will boost prices for customers and force more activity into the so-called shadow banking sector.
Trade groups including the American Bankers Association, the Consumer Bankers Association and the Financial Services Forum issued statements questioning the rationale for the stricter capital requirements.
“There is no justification for significant increases in capital at the largest U.S. banks and no other jurisdiction is likely to adopt the approach proposed today, which will only increase the significant disparity that already exists between U.S. and foreign bank capital requirements,” Kevin Fromer, CEO of the Financial Services Forum, said in an email.
“Regulators and other policymakers should carefully consider the harmful economic impact of this proposal,” he added. More

Federal prosecutors told a Manhattan judge they wouldn’t pursue a campaign finance charge against FTX founder Sam Bankman-Fried.
It’s the second time Manhattan prosecutors have had to forgo charging the billionaire, who is accused of precipitating the collapse of his crypto exchange through a multibillion-dollar fraud.
Bankman-Fried still faces multiple wire and securities fraud charges.

Indicted FTX founder Sam Bankman-Fried leaves the U.S. Courthouse in New York City, July 26, 2023.
Amr Alfiky | Reuters

Federal prosecutors dropped a campaign finance charge against Sam Bankman-Fried, the second time they have narrowed the indictment against the founder of crypto exchange FTX .
Prosecutors told Judge Lewis Kaplan on Wednesday that they were dropping the charge of conspiracy to make unlawful campaign contributions because they had failed to obtain permission from the government of the Bahamas for that charge when Bankman-Fried was extradited from the island nation in December.

related investing news

10 days ago

The U.S. Attorney’s Office in Manhattan previously dropped another charge against him, for violating anti-bribery statutes, on the same grounds.
The moves narrow the criminal exposure of the former billionaire, who prosecutors allege conspired to defraud investors and customers out of billions. The alleged scheme precipitated the collapse of Bankman-Fried’s FTX and sent shockwaves throughout the crypto industry.
Prosecutors had alleged that Bankman-Fried funneled hundreds of millions of dollars in bipartisan campaign financing through two unnamed co-conspirators to avoid campaign contribution limits. The charge could have added two to five years to Bankman-Fried’s imprisonment if convicted.
In their letter Wednesday to Kaplan in U.S. District Court in Manhattan, prosecutors wrote, “The Government has been informed that The Bahamas notified the United States earlier today that The Bahamas did not intend to extradite the defendant on the campaign contributions count.”
“Accordingly, in keeping with its treaty obligations to The Bahamas, the Government does not intend to proceed to trial on the campaign contributions count,” prosecutors wrote.
Since Bankman-Fried’s detention and extradition, civil and criminal charges have been brought against several exchanges, advisors and individuals for crypto-related schemes. Former FTX executives, including top lieutenants Caroline Ellison, Gary Wang and Nishad Singh, have all pleaded guilty to federal charges. They are cooperating with the government’s prosecution against Bankman-Fried, who is expected to face trial later this year. More

“Shark Week” is an annual block of TV programming on Discovery. It runs July 23 to July 29 this year.
Perhaps the most famous shark — the fictional great white from the 1975 Steven Spielberg summer blockbuster “Jaws” — can teach investors an important lesson about behavioral bias.
“Recency bias” is the tendency to put too much emphasis on recent events like a stock market rout when making investment decisions.

A ‘Shark Week’ blimp flies over the San Diego Convention Center on July 23, 2022.
Aaronp/bauer-griffin | Gc Images | Getty Images

It’s “Shark Week,” the annual television-programming event on Discovery that stars the ocean’s apex predators. And perhaps the most famous of these fish — the fictional, man-eating great white from the 1975 thriller “Jaws” — can teach an important money-saving behavioral lesson to investors.
Specifically, investors have a tendency to get swept away by the fear or euphoria of the recent past. This is called “recency bias,” and it’s often accompanied by financial loss.

related investing news

3 hours ago

2 days ago

This bias leads investors to put too much emphasis on recent events — say, a stock-market rout, or the meteoric rise of bitcoin or a meme stock like GameStop.
“People need to understand that recency bias is normal, and it’s hard-wired,” said Charlie Fitzgerald III, an Orlando, Florida-based certified financial planner. “It’s a survival instinct.”

By Wildestanimal | Moment | Getty Images

Even so, allowing short-term emotion to guide long-term financial decisions is generally counter to investors’ best interests, as is often the case when selling stocks in a panic.
Recency bias is akin to a common yet illogical human impulse, such as watching Steven Spielberg’s classic summer blockbuster “Jaws” and then being afraid of the water.
“Would you want to go for a long ocean swim after watching ‘Jaws’? Probably not, even though the actual risk of being attacked by a shark is infinitesimally small,” wrote Omar Aguilar, CEO and chief investment officer at Schwab Asset Management.

Fitzgerald equates the impulse to a bee sting.
“If I get stung by a bee once or twice, I’m not going to go there again,” said Fitzgerald, a principal and founding member of Moisand Fitzgerald Tamayo. “The recent experience can override all logic.”

Recency bias is largely associated with FOMO

Here’s a recent real-world illustration.
The financial services sector was among the top performers of the S&P 500 Index in 2019, when it yielded a 32% annual return. Investors who chased that performance and subsequently bought a bunch of financial services stocks “may have been disappointed” when the sector’s returns fell 2% in 2020, a year when the S&P 500 had a positive 18% return, Aguilar said.

Fans celebrate the June 14, 2005, release of the “Jaws” 30th Anniversary Edition DVD from Universal Studios Home Entertainment.
Christopher Polk | Filmmagic | Getty Images

Among other examples posed by financial experts: tilting a portfolio more heavily toward U.S. stocks after a string of underwhelming performance in international stocks, and overreliance on a mutual fund’s recent performance history to guide a buying decision.
“Short-term market moves caused by recency bias can sap long-term results, making it more difficult for clients to reach their financial goals,” Aguilar said.
The concept generally boils down to fear of loss or a “fear of missing out” — or FOMO — based on market behavior, said Fitzgerald.
More from Personal Finance:’We’re all crazy when it comes to money,’ advisor saysWhy our brains are hard-wired for bank runsThe fear of missing out can be a killer for investors
Acting on that impulse is akin to timing the investment markets, which is never a good idea. It often leads to buying high and selling low, he said.
Investors are most vulnerable to recency bias, he said, when on the precipice of a major life change such as retirement, when market gyrations may seem especially scary.

What’s in a well-diversified portfolio

Long-term investors with a well-diversified portfolio can feel confident about riding out a storm instead of panic selling, however.
Such a portfolio generally has broad exposure to the equity markets, via large-, mid- and small-cap stocks, as well as foreign stocks and maybe real estate, Fitzgerald said. It also holds short- and intermediate-term bonds, and maybe a sliver of cash, he added.

Investors can get this broad market exposure by buying various low-cost index mutual funds or exchange-traded funds that track these segments. Or, investors can buy an all-in-one fund, such as a target-date fund or balanced fund.
One’s asset allocation — the share of stock and bond holdings — is generally guided by principles such as investment horizon, tolerance for risk and ability to take risk, Fitzgerald said. For example, a young investor with three decades to retirement would likely hold at least 80% to 90% in stocks. More

The 13th Annual CNBC Delivering Alpha Investor Summit—New York City, September 28, 2023.  Register below

A KKR logo is displayed on the floor of the New York Stock Exchange (NYSE), August 23, 2018.
Brendan McDermid | Reuters

Private equity firms should be motivated to hunt for deals despite the challenging interest rate environment as the potential purchase price tends to be more in their favor, according to KKR’s Global Co-Head of Private Equity Pete Stavros.
“This is a great time to do deals,” Stavros said in an interview with CNBC’s Leslie Picker for the Delivering Alpha newsletter. “When you want to be more cautious is when capital is everywhere. You can get as much debt as you want. The credit markets are red hot. The M&A market you know is on fire. Those are times to raise your bar and be a little bit more cautious.”

Arrows pointing outwards

Private equity fundraising has slowed down drastically after a series of aggressive interest rate hikes made borrowing costs skyrocket. Globally, private equity funds raised $444.65 billion in the first half, down 20.5% year over year from, according to S&P Global Market Intelligence.
“When the public markets are more volatile and when credit markets are tighter, better return deals are done. That’s the history,” Stavros said. “It’s logical because purchase prices are constrained because you can’t borrow as much and the the money you can borrow is more expensive. This is the time to be leaning it now.

KKR announced its latest exit deal that involved RBmedia, a audio-books publisher that was sold to another investment firm H.I.G. Capital. The deal has an employee stock ownership program in place.
Stavros said private equity investors shouldn’t decide to sit on sidelines or go all in based on the market environment, adding that KKR instituted a rigorous process of not over-deploying or under-deploying in any given year.
“One of the most important points as it relates to private equity M&A, my view is as a private equity investor, you should not be trying to time the market,” Stavros said. More