JPMorgan Chase & Co. (JPM) could raise as much as $25 billion in leveraged finance “in one shot” if clients needed it, said Jim Casey, co-head of global debt capital.
“The biggest leveraged deal we could do right now is we’ve probably raised $15 to $25 billion of non-investment grade debt in one shot,” Casey said in an interview today on CNBC. Leveraged-loan volumes have dropped 18 percent to $411.6 billion in the first nine months compared with a year earlier, according to data compiled by Bloomberg. “These people should come to JPMorgan and we’ll give them money,” he said.
Corporations are trading at solid market valuations and have adequate access to capital, he said.
“But the third variable that’s missing is confidence,” Casey said. “CEOs just don’t have the confidence to go buy companies because there’s a lot of risk.”
In the past 12 months, the largest leveraged buyout deals globally were the sale of Samson Investment Co. to a KKR & Co.- led group for $7.2 billion, and the sale of El Paso Corp.’s oil and gas production unit to a group led by Apollo Global Management LLC (APO) for about the same amount.
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