Banks could be barred from leveraged loans
Wall Street banks finally moved a hefty amount of buyout debt recently, but investors shouldn’t dwell on that. What they should be worried about is that the banks are not doing enough transactions.
Wall Street investment banks, including Bank of America Swiss credit and Goldman Sachs are on track to share losses of more than half a billion dollars in financing a leveraged buyout of Citrix systems The Wall Street Journal reported. After delaying the offer until last week, they were able to sell bonds and loans on their books, albeit at steep discounts. It is difficult to determine how this will affect an individual bank, but the experience could affect future transactions.