could they pull in another person beyond kkr?w that other private equity firms had also looked at walgreens, so there are probably others out there. carol: does not mean they would. >> exactly. they have also been talking to lps about going in with them because pension funds and sovereign wealth funds also have a lot of money to put to work. so there are a lot of people looking at this deal. i think they would need about $30 billion of equity. as well as the $50 billion of debt. jason: right. so, the equity equation and debt equation are two different things. looking forward, let's assume this does happen. what has become clear is people are thinking big in this market. if maybe there is not a $70 billion-$80 million deal happening, we could go back to an era, when we are thinking about $40 million deals. -- $40 billion deals. what are your hearing from bankers about new ideas? are they saying i hadn't thought maybe this was possible but now we should start doing some books? >> people are saying you can 10 billione 10 billio doll

at the same time, remember, kkr had a rumor about walgreens, a huge buyout. still a rumor. we will see if the big deals start coming back. lisa: one impediment standing in the way of more leveraged buyouts has been valuation, particularly of loans, which has not been as high. what have we seen in particular with collateralized loan obligations, considering they are the main buyers of the leveraged buyout debt? adam: returns have been lackluster across the board, especially in equity. nomura set the lowest range since 2013. the lowest since 2013. why? wide spreads, less economical to put the deals together. lisa: the way this works, the pool of leveraged loans is traunched out in various levels, and even the top level investment-grade ratings earned way less than bonds. why has there been lackluster demand for this vehicle? adam: spreads across the board this year have been wide and stagnant. you have a fundamental problems in the underlying leverage loans. there have been increased loan downgrades. we are worrying about all of these ccc's in clo's, price drops. higher perce

globally from early november through christmas eve thetock rose 3 cents to 133.6.va i p equity firm kkrng overdrive a digital platform helping high braers and schools deliver digital content. value of the deal was not disclosed. the stock was up a fraction to 29.28 toda accepted e f the da prufl application for a breast cancer extremist. the medicine is for treatment advanc form of the disease. shares gained more than 5.5% to 21 pft 67. >>> all this week we are getting you ready for the newear bringing back familiar market monitors. tonight's guest has all weather stocks he says will protect your portfolio during a slow, steady economy. last time he was on m as aket monitor was in july of 18. he recommendedan em, up 23 peppers over that time. apple up 51%. and google parent alphabet is up 14% since he recommended thpei andy capis back with us director at research of region atlantic good to see you again welcome gawk. >> thank you. >> van guard reit the etf slow and stead. >> i calling it the roll stone recover when you think they are out and not turning more they announce another fare w

. >> because the double story here because talk about kkr pab wanting to take it private management wanting to take it private. difficult to do, a massive buyout but is there any way op on the options sfraeg if you think it may be bought out, do this. >> it's interesting you mention that because one of the thungs that people who are doing a risk ash traj one of the favorited trades is to buy the stock and sell calls against it usually you try to sell calls at the price where you think the stock might be taken out in those instances you try to sell calls as long dated as possible why? because when a company is taken private, the extrinsic premium goes straight to zero. but if you think it's taken out at a premium -- the think is the market isn't pricing that in i want to make that clear. there has been speculation but the stock is not behaving like that's what everybody thinks is happening. >> good stuff there and boeing by the way could soon join those three as the only three that are down for the dow's worst performed performer to the best performer what else, folks it's apple, the best ye

the ceo stepped down after disappointing third quarter revenues kkr is buying the overdrive businesskuten. delivering services to several countries. they bought the business for about $400 million nissan says its number three executive is resigning less than a month since taking that post the automaker didn't give a reason but it is widely believed he didn't see eye-to-eye with the new ceo. shares up are again about one-third of one percent >> experts say the odds of corporate data breach are increasing we have that story >> reporter: good morning. data breeches can take a major financial toll on companies. startups are using hackers to help find potential loopholes before it is too late. goldman sachs are paying hackers to break into their systems to find flaws before hackers do hacker one connects a network of white hat hackers to fortune 500 companies. they get paid in exchange for finding vulnerabilities. >> we are allies we are not just sketchy people in their mom's basement out there to cause damage. >> the average cost of a data breach in the u.s. is $8.2 million hacker one ce

kkr naming a new cfo. bill is retiring at the end of the year, the current cfo.has been at the position for 1.4 years and he is retiring. robert will take his place as cfo. scoopturn to a bloomberg and talk about the driver for today's market action. u.s. and china said to be inching closer to a deal despite tensions over hong kong. the latest twist in this saga helping reverse yesterday's actions. before we get to cameron, who will interpret the reaction, talk us through what happened when it comes to trade discussions. what have we learned versus what do we hear from the president? sarah: it seems that colette has changed yet nothing has changed in the past week. we saw markets at record highs last week. trump said they were getting close to a deal and people were taking solace in that. of course we woke up monday morning to a lot of trade news including what looked to be skepticism from trump that a deal could even be reached before next year. so what we are reporting today is despite all these talks, cut through the noise, the two sides are making progress in

we know some of the biggest shareholders are kkr. then the ceo has 7% of shares.ill waiting to see who insiders selling from after the expiration. we will be keen to figure out those details when we have them. vonnie: we have been following expirations throughout the year. was a big know uber one after travis kalanick sold all of his shares shortly after the lockup expired. beyond meat struggled in the fourth quarter, that is when it's lockup expired. you are seeing early investors take some of the big gains and take them from profit into real money. vonnie: thank you. taylor riggs in san francisco. times the latest bloomberg business flash. the latest business stories in the news. retail ceo is leaving softbank board. japan's richest man has been on the board for more than 18 years. he founded a fashion change and has been one of the few softbank board members capable of standing up to the ceo. and thosewners amongst them that were able to afford massive homes laid low in 2019. several factors keeping buyers away, including political concerns about trade wars and

and we break down kkr's possible $70 billion leveraged bu

>> it's because black tonne and kkr were partnerships and couldn't be owned by the indexes. money has been flowing into indexes they made the smart move to convert into c copperrp.s both were up literally 90% lazard is still a partnership and can't be owned by the s&p 500. it's trading at 11 times earnings, where blackstone is close to 18. we're hoping they will see the light and convert to an s corp >> peter, what's your top pick for next year? >> i think we like reits i actually think the ten-year will have a lot of trouble getting above 2 or 225 rates will go lower on the slowdown we expect and reit reis tend to be very slow cycle >> it's not easy being the grinch >> we appreciate your honest perspective on what's going on and what's to come thank you for joining us >>> coming up next, we'll talk to former twitter executive katie jacob stton out anabher new female-focused venture capital fund why she says now is the right time to launch "closing bell" is back in about 90 seconds gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoi

financial service companies, some that you know well, like lazard or kkr.s that seem to be totally neglected, even as the markets recovered. david: let's talk about the economy. the united states economy was in a recession that ended june of 2009. and so now, for about 10 years, we have been in a growth cycle. it is one of the longest in the our country's history. therefore, there have not been a lot of depressed stock prices for this period of time. so are you kind of hoping that at some point there is a recession, so we can get lower stock prices? you can buy more things at lower value prices? john: we like to buy bargains. we like seeing sectors that are cheap, but we don't want to see a recession. you know all of the turmoil that happens, the impact on our society and our citizens, you know recession is not great for america. david: so let's suppose i say i watched you, and you are a good value investor. i will give you some money. what kind of rate of return can i expect from your products? john: you know, over the 36 years, we have been able to compou

we know keep your interest -- we know kkr -- is the market there to do it?e question will be -- there would have to be co-investors. some pension funds, sovereign wealth. there is no way a private equity firm could take this on. alix: the third thing we are watching his knees on. nissan's new cna was committed t alliance with renaud and mitsubishi. >> we are in a position to evaluate the results and then distinguish what went well and what needs to be changed. bringfor more we want to in bloomberg automotive reporter craig trudell. this is a window into the car industry trying so hard to cut jobs. >> we saw a rash of announcements just last week with some of the european automakers, audi and daimler talking about thousands of jobs. nissan has been in shambles for the last year. the lost carlos ghosn, longtime ceo and chairman of the company. he was arrested. you had a ceo who had troubles troublesn, similar overpayments by the board. this is a company that is struggling. profits are at decade lows and this new ceo is coming in, he was the head of the china o

sonali: right now the merchant banking division rivals the size of kkr.nly want to be bigger here. we are in a record fundraising environment. this is definitely a big private market play, and which they want to be allocating money for their investors. alix: let's get to those zombie firms. david hunt, pgim ceo, talk about that. here's what he had to say on bloomberg. david: my view is they will become, i've used the firm some be funds, with vacant -- the term zombie funds. they still pay the bills, but they don't really go out of existence, and therefore capacity doesn't come out of the industry. alix: i feel like we've heard that a lot, but there's still so much money out there sloshing around, it is hard to get the zombie firms to die. sonali: there's two different strategies. one with goldman, where it is private markets, potentially higher yields. those are raising record funds. what david hunt here is talking about is something more and more managers are turning to. forget the passive equities. let's get the higher fee business, the harder to execut