Banks' LBO Debt Hangover May Leave Lasting Scars
Summary
- Leveraged-finance bankers are nursing a headache after one hell of a party.
- The average price of U.S. high-yield bonds fell as much as 16% between January and early July, according to the ICE BofA U.S. High Yield Index.
- With interest rates rising and the world heading for recession, it’s unlikely that banks will claw back all of the losses.
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