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Blackstone's unconventional debt wisdom

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Cheap debt is bad for buyouts?

FORTUNE -- Credit is the fuel of private equity, often allowing buyout firms to contribute just 30% or 40% of acquisition prices. And the better the credit terms, the more private equity firms stand to gain.

So one would think today's near-zero interest rates are a boon for the industry, but The Blackstone Group's (BX) Tony James thinks the pendulum may have swung too far.

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