Luna Martinez is the chief investment officer of the Abioye Family Office (Abioye). Five years ago, Abioye embarked on a plan to change its asset allocation. The plan included increasing its allocation to private equity from 0% to 35%.
Martinez is meeting with Sophie Egebe, newly elected head of the family council that oversees Abioye. Egebe wants to better understand the decision to move into private equity. She also wants to discuss the performance of some of the current positions.
Egebe asks Martinez, "Why do you believe private equity funds are able to create better returns than publicly traded equity?" Martinez responds, "One reason is that the companies held by private equity funds tend to use higher leverage than similar publicly traded firms, which has a positive impact on equity returns. Higher leverage is possible because many private equity firms have a track record of borrowing and repaying debt in previous deals, which appeals to lenders and credit markets. Private equity firms also co-sign the debt issued by the companies they hold in their funds, which improves the firms' credit ratings and lowers their borrowing costs."
Regarding the use of leverage by companies held in private equity funds, is Martinez most likely correct?
A Yes
B No, she is incorrect regarding co-signing
C No, she is incorrect regarding payment history
B is correct.because private equity firms do not generally offer repayment guarantees on the bonds issued by companies owned by their funds or co-sign loans made to these firms. These companies issue debt in their own name, either secured by their assets or as general obligations of the company.
请问这题目考察的是哪个知识点？应该怎么解读？
