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	<title>Comments on: Leveraged loan clearout, Citi edition</title>
	<link>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/</link>
	<description>FT Alphaville from FT.com</description>
	<copyright>Copyright The Financial Times Ltd 2006. "Alphaville", "FT" and "Financial Times" are trademarks of the Financial Times.</copyright>
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	<pubDate>Fri, 29 Aug 2008 21:43:04 +0000</pubDate>
	<lastBuildDate>Fri, 29 Aug 2008 21:43:04 +0000</lastBuildDate>
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	<item>
		<title>by: Anonymous</title>
		<link>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17036</link>
		<pubDate>Wed, 09 Apr 2008 15:10:53 +0000</pubDate>
		<guid>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17036</guid>
					<description><![CDATA[Sorry,

That should have said "10% return plus interest"]]></description>
				</item>
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		<title>by: Anonymous</title>
		<link>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17035</link>
		<pubDate>Wed, 09 Apr 2008 15:10:00 +0000</pubDate>
		<guid>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17035</guid>
					<description><![CDATA[A couple of ideas:

1. The PE firms gets a 10% return   interest on their own debt -- before leverage.

2. Citi gets some much needed marks for their LBO portfolio right before earnings.]]></description>
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		<title>by: JM</title>
		<link>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17027</link>
		<pubDate>Wed, 09 Apr 2008 12:01:26 +0000</pubDate>
		<guid>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17027</guid>
					<description><![CDATA[Why would they be buying at 10 cents discount to par when most assets are trading below this level in the market?]]></description>
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		<title>by: Ando</title>
		<link>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17018</link>
		<pubDate>Wed, 09 Apr 2008 11:08:50 +0000</pubDate>
		<guid>http://ftalphaville.ft.com/blog/2008/04/09/12181/leveraged-loan-clearout-citi-edition/#comment-17018</guid>
					<description><![CDATA[And what about the PE houses buying the debt? If the portfolio includes large amounts of their own LBO debt (albeit bought from Citi at bargain prices), aren't they taking a big bet on themselves? If one of the companies they loaded up with cheap debt fails, wouldn't the fact that they hold the debt as well as the equity multiply their losses several times over (the flipside of leverage increasing returns)? If some of the PE houses overpaid for companies last year and now we are in a recession, isn't it likely that some of the acquired companies will fail? Perhaps they'll save on administrator costs and creditor disputes in event of a bankruptcy, by owning both the equity and the debt...]]></description>
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