[Uncle Miltie]

"Carlyle had $28 of borrowings for every $1 of its own money."

Who makes these stupid loans? Jeez.

[TigerLikesRooster]

A classic case of hubris.

[olrtex]

It does seem hard to see how the lenders could make margin calls and sell collateral fast enough to protect themselves if the debt-to-equity ratio is 28:1. If some financial whiz kids are reading these comments, maybe they can enlighten us (or just agree with you that the loans are “stupid”).