Leveling and Leverage

Here’s something that caught my attention — companies are increasingly using ‘holdco’ structures to boost leverage and control. Byrne Hobart points out that these parent companies can raise more debt, then allocate it smartly across their subsidiaries, giving them a power edge. Now, here’s where it gets interesting — this isn’t just about debt. Hobart highlights that AI deployment is changing the game, allowing firms to be more disciplined in how they bid and invest. They can better analyze risks and opportunities, which means smarter, more strategic moves. But here’s the thing — these strategies come with risks, especially if funding sources shift or if AI isn’t managed carefully. Byrne Hobart emphasizes that disciplined bidders and open-source funding are shaping the future of how big players operate. So what does this mean for you? As leverage and tech evolve, staying sharp on these shifts could give you a real advantage in your own business or investments. The landscape is shifting fast — and the winners will be those who understand these new tools and structures.