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14 results for “market failure”
Concept21 mentions across episodes
market failure
...market, like the dot com bubble happened or January 2022 happened in tech stocks, and you start to see the tide go out combined with other potentially attractive lower risk places to put capital, you start sort of scrutinizing things that were really
2:00:41 / 2:01:49
from transcript2:00:41 – 2:01:49
So interest coverage is a funny problem because, again, you gotta make that coupon payment. If you're unable to make the coupon, you have a couple of options. You can go to your lender and try and work something out, or your ultimate resources, you c
12:37 / 13:48
from transcript12:37 – 13:48
They are relying probably on the next tranche of venture funding to come in. Mhmm. If their plan says we're gonna burn a certain amount of money, and the venture partners are going to continue to fund us. Eventually, the venture fund runs out of pati
11:15 / 12:18
from transcript11:15 – 12:18
...whole market. What winds up happening is let let's say a company is doing a couple million in sales. Right? They're worth maybe
17:15 / 18:18
from transcript17:15 – 18:18
...and failure? Good question. That's when they come to me. The companies come to me when they're perhaps pre revenue. They're almost always pre profitability. They are relying probably on the next tranche of venture funding to come in. Mhmm. If their p
10:16 / 11:34
from transcript10:16 – 11:34
...the market just moves right ahead of you. Right? And everybody positions those trades that you're gonna do. Happened during fall of mageddon as well. Right? Very much so. When when you have a big trade that everybody knows what you're gonna do and wh
20:15 / 21:17
from transcript20:15 – 21:17
...the market pukes out, we're gonna step in and buy and watch it ride back up. That happens every ten years, there's a big puke out. That's a tough investment strategy to price for. Yeah. Yeah. Yeah. The reality is that the data is pretty clear. In eac
14:59 / 16:00
from transcript14:59 – 16:00
...it pays off. Right? So they're they're structurally designed to do that. And when it doesn't work, they are great at cutting and running, the big guys. Right? They they know if they way over capitalize something and it's not a hit, not to way over ca
18:37 / 19:58
from transcript18:37 – 19:58
And the mortgages, the the subprime mortgages issued to people who could not or would not document their income or their assets were packaged into mortgage backed securities, and the people who bought the riskier tranches of those securities lost all
22:19 / 23:32
from transcript22:19 – 23:32
...the futures market is particularly uncompetitive. I remember talking to Chris McCann at Raised Capital and talking through how they thought about investing in FTX's seed round as, like, spot and futures are almost equivalent in market size,
32:15 / 33:17
from transcript32:15 – 33:17
...market that was going bad, but a lot of those products had been built with a huge amount of leverage, which meant that even a small loss made them extremely problematic. Mhmm. You had a problem of tranching, which was very, very complicated in many o
21:41 / 22:47
from transcript21:41 – 22:47
But if you see those deals getting done, it tells you that investors are not applying vigilance. They're not doing their job of resisting deals that are too risky or structured, not in their favor. And in 05/00/2006, I was seeing these deals done tha
20:55 / 22:01
from transcript20:55 – 22:01
it hasn't worked well. Has it ever worked well for you? First of all, it never works well. I mean, my first rule of thumb is this. When you find yourself going to look at the legal documents in a venture deal, you're probably on your way to losing mo
16:11 / 17:34
from transcript16:11 – 17:34
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