Tuesday, January 19, 2010

Homebuilders Look for PEU Financing

Reuters reported:

Convinced that banks will reject homebuilders' loan applications for years to come, the builders' industry association is playing matchmaker to connect members with private equity firms.

Watch out home builders, private equity underwriters (PEU's) use debt for back door corporate raids. Help from a speed date could decimate home builder equity. Beware PEU covenants.

Shadow bankers helped implode the financial system. They could do likewise for home builders.