WS banks spent the past year relying on robust capital markets to offset losss in retail-banking operations. Now the revenue stream is going to dry up.
A sudden retrenchment in debt market is likely to nip at profits at the big banks that have been financing the leverage-buyout boom.
J.P. Morgan Chase & Co, Citigroup Inc. and Bank of Amrica Corp are the biggest players in the leveraged-loan business.
A sudden retrenchment in debt market is likely to nip at profits at the big banks that have been financing the leverage-buyout boom.
J.P. Morgan Chase & Co, Citigroup Inc. and Bank of Amrica Corp are the biggest players in the leveraged-loan business.
In the U.S., so-called covenant-lite deals accounted for about 26% of first quarter deals vs 4.6%in European leveraged-loan issues. The pace began to increase sharply in Europe in March.
Also, banks have provided $33.38 bil in bridge loans to leveraged-buyout deals, more than double last year's $12.87 billion.
Banks usually do not reveal details on revenue or fess from leverage loans.
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