Burning Issues: PE's Dry Powder, Art's Bleak Picture & China Credit Stress

Burning Issues: PE's Dry Powder, Art's Bleak Picture & China Credit Stress

Assessment

Interactive Video

Business

University

Hard

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The video discusses the concept of 'dry powder' in private equity, highlighting its potential as both an opportunity and a competitive threat due to high valuations. It then shifts focus to the Asian art market, detailing the disruptions caused by COVID-19, including the cancellation of major events and the impact on Chinese collectors. Finally, it examines the risks of default in Chinese companies, emphasizing the significant amount of stressed debt and the potential need for state intervention.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main challenge in deploying the 'dry powder' in private equity firms?

Insufficient funds

Regulatory restrictions

High valuations

Lack of investment opportunities

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the 'dry powder' in private equity pose a threat to traditional banks?

By reducing loan demands

By competing in similar markets

By increasing interest rates

By causing inflation

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the impact of the coronavirus on the Art Basel Hong Kong event?

It was moved to another city

It was postponed to a later date

It was held online

It was canceled

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of the global art market did Asian buyers account for in 2018?

30%

25%

19%

10%

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the estimated amount of stressed China dollar debt mentioned in the transcript?

$5 billion

$15 billion

$9 billion

$20 billion