“Providing a sign of the gross fiscal mismanagement is fellow Forbes contributor Mayra Rodriguez Valladares, who noted how excessive use of leveraged loans in PE-owned firms has become unmistakable. The number of third-party rated companies defaulting is on a sharp rise and more than half are PE-owned, the results of leveraged buyouts. As she wrote:

During the first half of this year, rated companies owned by such private equity firms as Blackstone BX -1.9%, Goldman Sachs Group GS GS -0.8%, KKR KKR KKR -0.1%, and Thomas Lee have defaulted; Ares Management ARES ARES +0.3% owns the highest number of defaulted private-equity owned rated companies.

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