Will Big Banks Be Left Holding the LBO Bag?
Sidel, Robin. 2007. “Burning Bridges? Top 3 Banks May Soon Show.” Wall Street Journal (18 July): p. C 1.
Banks extended $33 billion in leveraged-buyout-related bridge loans in the first half of 2007, according to data compiled from Reuters LPC. “In all of last year, banks extended just $12.9 billion of bridge loans …., but the total amount is still below the $48 billion of such loans Reuters calculates from the buyout heyday of 1988.”
“In a report issued Monday, Credit Suisse analyst Susan Roth Katzke estimated that junk-bond underwriting, lending to companies with low credit ratings, and mergers advisory in all account for less than 7% of the total revenue of the commercial and investment banks she tracks.”