Distressed Debt Swaps Are Mostly Costly Failures, HPS's Puri Says
'There's a lot of money and fees going out the door and there's a lot of brain damage and creditors and recovery rates have been totally demolished and it didn't work anyway,' Purnima Puri, head of liquid credit and a governing partner at HPS, said on the Bloomberg Intelligence Credit Edge podcast Thursday.
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Big Yields, Big Companies, Big Investment Opportunities
Prologis is the largest industrial REIT, offering a historically high 3.8% yield. Realty Income is the largest net lease REIT, offering an over 5.6% yield. Simon Property Group is the largest mall REIT, with an attractive 5.2% yield. 10 stocks we like better than Prologis › Dividend investors looking for high-yielding stocks should spend some time examining real estate investment trusts (REITs). REITs are specifically designed to pass income on to investors. As the REIT sector has matured, however, a few companies have started to stand out and grow. Three such high-yield, industry-leading REITs you might want to buy today are Prologis (NYSE: PLD), Realty Income (NYSE: O), and Simon Property Group (NYSE: SPG). Here's why. Prologis is the lowest-yielding REIT on this list, with a dividend yield of "just" 3.8%. That yield is well above the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC), but a touch below the roughly 4% yield of the average real estate investment trust. However, Prologis' yield is near the high end of its yield range over the past decade. That makes this REIT highly attractive, given the relatively rapid pace of dividend growth it has achieved. Prologis is the largest industrial REIT, with a global portfolio of warehouses located in most of the vital distribution hubs of the world. The tariff issues swirling in the news have investors worried and downbeat on Prologis' stock, even though the business continues to perform fairly well. For example, adjusted funds from operations grew 10% year over year in the first quarter of 2025. The average annualized dividend increase over the past decade was over 10%. If you don't mind buying while other investors are selling, Prologis is a giant industrial REIT that looks like it is on sale. You'll need to go in with the belief that the tariff issues in play today will work themselves out over time. But given the interconnectedness of global trade, that seems like a reasonable conclusion. Like Prologis, Realty Income is the largest REIT in its niche. In this case, that niche is net lease. Realty Income's 5.6% yield is well above both the market's and the average REIT's. It also happens to be toward the high end of Realty Income's yield range over the past decade, suggesting that now is a good time to buy this giant dividend stock. Realty Income largely owns single-tenant properties across the U.S. and European markets. The tenants are responsible for most property-level costs (which is what a net lease requires of the tenant). Realty Income is heavily focused on retail assets, which tend to be easy to buy, sell, and release if needed. But it also has exposure to industrial properties and an increasing collection of "other" assets, like vineyards and casinos. In addition to these physical assets, Realty Income has started to make debt investments and to offer its investment services to institutional investors. Basically, it has been steadily increasing the levers it has to pull as it looks to keep growing. This is important because Realty Income is so large that it requires a lot to move the needle on the top and bottom lines. That's the bad news. The good news is that its scale and conservative culture make it a highly reliable dividend stock. On that score, the dividend has been increased annually for three decades and counting. If you don't mind collecting a lofty yield supported by an industry-leading company and slow and steady dividend growth (think low to mid-single digits), you might want to buy Realty Income today. Simon Property Group owns enclosed malls and factory outlet centers. Although most of its assets are in the U.S. market, it has a material number of factory outlet centers that are located overseas. Its portfolio tends to be focused on high-performing retail properties that have leading positions in the regions they service. People like to shop, and Simon gives them a way to do that. The dividend yield is a lofty 5.2%. There's an important caveat here, however. Simon Property Group has a history of cutting its dividend. It did so during the coronavirus pandemic's height and during the Great Recession, both periods of time when the consumer urge to visit a shopping mall waned. Expect cuts like these to happen again, but you should also expect the dividend to get right back on the growth track. That's what happened after the last two dividend cuts, since people tend to get back to shopping as quickly as they can when economic conditions improve. Probably the most important reason to like Simon is its focus on high-quality properties. Essentially, its malls are a big draw for consumers, which makes them a big draw for tenants, too. As lower-quality malls get shuttered, high-quality malls will become more and more attractive. If you can handle a little cyclicality, high-yield Simon has proven a very rewarding dividend stock over the long term. It isn't likely that investors will like all three of these REITs. However, they are each likely to be appealing to at least some investors on their own unique merits. Prologis is an out-of-favor landlord with a strong dividend growth record. Realty Income is a slow and steady tortoise, for those who like reliable dividends. And Simon is a high-quality retail landlord with a cyclical business that is increasingly differentiated from the pack. Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Reuben Gregg Brewer has positions in Realty Income and Simon Property Group. The Motley Fool has positions in and recommends Prologis, Realty Income, and Simon Property Group. The Motley Fool recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. Big Yields, Big Companies, Big Investment Opportunities was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 minutes ago
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Astrana Health completes acquisition of Prospect Health for $708m
US-based Astrana Health has closed its acquisition of Prospect Health, a care delivery network, for a total purchase price of $708m. With a network of more than 11,000 providers, Prospet Health offers coordinated care to approximately 600,000 members. The network covers various states in the US, including Arizona, Rhode Island, Southern California, and Texas, serving Medicaid, Medicare Advantage, and Commercial business lines. Prospect Health's operations include a health plan, a management services organisation, a speciality pharmacy, and an acute care hospital. The acquisition price reflects a decrease from the initially stated $745m in November 2024. Astrana president and CEO Brandon Sim said: "We are excited to welcome Prospect Health's physicians, providers, and team members to Astrana Health. "Together, we will further accelerate our mission to drive consistent, coordinated, high-quality patient outcomes at scale, ultimately driving greater value across the healthcare ecosystem." Astrana projects that Prospect Health will contribute a total revenue of approximately $1.2bn and $81m in adjusted EBITDA annually. In addition, Astrana anticipates achieving $12m to $15m of synergies within the next one to one-and-a-half years. The company has updated its 2025 full-year guidance to a revenue range of $3.1bn to $3.3bn and adjusted EBITDA between $215m and $225m, considering Prospect Health's half-year contribution. Following the transaction, Astrana's net debt is expected to be approximately $700m. The company's management is focused on lessening the net leverage ratio to below 2.5 times within the next one to one-and-a-half years. Truist Securities led a consortium of banks that offered the term loan for the purchase. J P Morgan acted as the exclusive financial adviser to Astrana during the transaction. The acquisition follows Astrana's previous acquisition of Collaborative Health Systems in October last year, which also aimed to broaden its care delivery capabilities. "Astrana Health completes acquisition of Prospect Health for $708m" was originally created and published by Hospital Management, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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6 minutes ago
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SPACs Regain Popularity as IPO Alternative for Smaller Firms
(Bloomberg) -- After years out in the cold, special purpose acquisition companies are again positioning themselves as an alternative to traditional initial public offerings for businesses that have been left out of the nascent recovery in first-time stock sales. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds Massachusetts to Follow NYC in Making Landlords Pay Broker Fees What Gothenburg Got Out of Congestion Pricing California Exempts Building Projects From Environmental Law Only nine of the 100 traditional IPOs priced in 2025 have raised more than $500 million, while two-thirds of these brought in less than $50 million, according to data compiled by Bloomberg. The figures highlight the IPO market's barbell shape this year, consisting of large, well-established companies on the one hand and riskier small-cap companies on the other. Small and mid-sized companies sandwiched between the two extremes could increasingly seek to merge with SPACs as an alternative to the regular way of going public, said Kristi Marvin, founder and chief executive of data and analysis firm SPAC Insider. 'Many companies that have a $1 billion to $5 billion market value are not given the same priority by bankers as the larger companies,' Marvin said. That's leading firms to consider other options, including the SPAC route, she said. Recent deals include Cantor Equity Partners' $3.6 billion combination with Tether and SoftBank Group Corp.-backed Bitcoin treasury company Twenty One Capital Inc., announced in April, Ares Acquisition Corp. II's $2.5 billion union with driverless truck tech firm Kodiak Robotics Inc. — also unveiled in April — and the announced merger of Michael Klein's Churchill Capital Corp. IX with another driverless truck tech firm, Plus Automation Inc. As a result, the SPAC IPO market is having its busiest year since 2021's boom and bust that saw more than 600 blank check vehicles go public, many of which either turned into disappointing investments following mergers with concept-type companies or timed out without striking a business combination. The prospects for both traditional and non-traditional routes to the public markets are picking up amid a rebound in US stock markets, with eye-popping debuts by companies such as Circle Internet Group and CoreWeave. Stock prices also jumped in the case of SPACs that have announced business combinations, also known as deSPACS. 'The strong aftermarket performance we have seen from recent IPOs and recent deSPACs is certainly catalyzing additional interest in both markets,' said Beau Bohm, Cantor Fitzgerald's global co-head of equity capital markets. 'The resurgence in both the traditional IPO market and the SPAC market is very much related.' Marvin expects more deal announcements this year, even though their current number — at 23 — remains far below that for SPAC IPOs. 'It is always difficult and that's why a lot of names from 2021 got into trouble,' she said. 'It looks easy from the outside but all of the sponsors will tell you it is not.' Sectors such as crypto will likely feature heavily in both the traditional IPO market and the SPAC business, though the new SPAC cycle will potentially provide higher-quality companies than the previous one. 'A distinction between what we are seeing now and what we had seen when the SPAC market cooled a few years ago is an enhancement of the general quality of issuers that are contemplating these alternative means of going public,' said Bohm, whose firm is leading the market by pricing 16 SPAC IPOs this year. Criticism of SPACs often overlooks that most traditional IPOs priced in 2021 also fell sharply from their offering prices, Marvin said. 'It is a better-quality sponsor coming to market and a better deal environment,' she said. And, there are success stories, with former SPACs such as Hims & Hers Health, RocketLab, Vertiv, SoFi Technologies and DraftKings all turning into market favorites. While the path to a deSPAC transaction can be long, companies can take advantage of the current risk-on environment to pitch their story and secure commitments from investors for capital more quickly than the traditional IPO process allows, Bohm said. Some companies recently chose to go public via the deSPAC route, even though they had the chance to pursue a regular IPO. 'In the current market environment, there is more than one viable avenue for issuers with attractive stories to get public,' Bohm said. (Adds link in paragraph 6.) SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
