Wall Street Plays Long Game as Deals Go Private
From Yahoo Finance: 2025-05-10 15:00:00
Wall Street is going to great lengths to keep leveraged underwriting business from private credit with KKR & Co. debt sale. Banks like Jefferies and Citigroup have extended low-fee credit for KKR’s acquisition of Karo Healthcare to maintain relationships and secure business amidst market volatility. (45 words)
Banks are evolving to compete with private credit as market volatility pushes borrowers that way. KKR opted for a private unitranche deal amidst turbulence, paying traditional lenders a fee for their risk. With speculation rising over banks’ use of undrawn loans as a bargaining chip, the competition for underwriting packages intensifies. (45 words)
At the Milken Institute Global Conference, private credit players eye bargains amid market gyrations. US high-grade corporate bond sales hit $45 billion, signaling market reopening. Banks seek ways to offload $6 billion of buyout debt amidst thawing markets. Companies in private credit market show stress, shifting creditor treatment dynamics. (45 words)
Notable bankruptcies this week include Rite Aid, WeightWatchers, and Synthego Corp. Sumitomo Mitsui Banking Corp. partners with asset managers for $1.7 billion in lending. Morgan Stanley, Deutsche Bank, Nomura, and others make key hires. Market dynamics shift with bankruptcy filings and strategic hires across financial institutions. (45 words)