“Liquidity Crisis”—Turmoil in the Asset-Backed Securities Markets

The ink was barely dry on our July 19 quarterly letter, when a severe liquidity crisis enveloped the credit markets. As a result, the stock market has been very volatile and financial service company stocks have come under heavy selling pressure. Very little of substance has changed in the long-term outlooks for our portfolio companies, but in light of the price declines and scary headlines, we thought shareholders might appreciate a brief update.


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