[chasingsparks]

Concerning LBOs, the most interesting thing is not that the target firms investors may get hosed, but that these deals are profitable because they exploit the absurd vagaries in the US tax code. The fact that companies have to spend an enormous amount of time and money aligning their capital structure with business needs and tax constraints is not great.

Incentivized debt may be a problem in a country that seems to have problems with debt.