Investors refused to buy $11 billion of new bonds and loans

July 31st, 2007|by Michael Ashley Schulman, Perspectives, The Big Picture, Writers|

In mid July, investors refused to buy $11 billion of new bonds and loans that Goldman Sachs, JP Morgan, Citigroup, Lehman and the other Wall Street banks created to finance major leveraged buyouts (LBOs): DollarGeneral, First Data, TXU, ServiceMaster, US Foodservice, etc. The huge excess supply of unwanted debt created the worst high-yield debt bear […]