Wall Street faces billion-dollar losses on sinking buyout debt

The Edge Markets LogoThe Edge Markets1 mo ago

Wall Street faces billion-dollar losses on sinking buyout debt

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In the first quarter of 2020, for example, JPMorgan Chase & Co and Credit Suisse each took hundreds of millions of writedowns related to acquisition deals that they had agreed to finance before a pandemic-induced freeze in credit markets.

In the UK take-private deal of Wm Morrison Supermarkets Plc, a group of underwriters led by Goldman Sachs has already racked up losses in excess of 125 million pounds (US$153 million) by offloading chunks of the financing at steep discounts.

(June 23): Investment bankers in the US and Europe are bracing for potentially billions of dollars in total losses on big-ticket leveraged buyouts as they struggle to offload risky corporate debt that’s plunging in value amid a sweeping market selloff.

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Category: InvestingFinance

Topics: Billion According Debt Losses Market Group Buyout People Banks Credit Lenders

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-23, 14:18:58

News Timezone: GMT +8:00

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Language: English

Reading Time: 6 minutes read

Article Length: 955 words

Coverage Area: Malaysia

Availability: Desktop Web, Mobile Web

News ID: 6047

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