Hear that creak? It’s the sound of a logjam shifting. S&P LCD puts the forward calendar of leveraged loans back under $100bn for the first time in over a year. Chart thanks to the team at Bank of America.
So the banks’ efforts to shift their haul is working. But as the banks compete to entice private equity buyers, they are locking in lower prices and allowing potential buyers to pick and choose what they’re prepared to take on, inevitably getting stuck with the worst of the assets. More writedowns to come then.
Related links
Citi allows loan “cherry picking” - FT.com
Deutsche speeds sale of leveraged loans - FT.com
