Deals
Carlyle's Unwanted Debt Exposes Growing Problem on Wall Street
- Debt offering for Symantec's data-storage unit put on hold
- Banks increasingly on hook as $15 billion of deals struggle
Inside the High Borrowing Costs of Junk Bonds
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Investors who piled into anything and everything in the junk-debt market in recent years have begun to run in the other direction at the first sign of trouble.
The turnabout has caught Wall Street’s biggest banks off guard and is increasingly leaving them on the hook for funding takeovers that investors want little part of. On Tuesday, Bank of America Corp. and Morgan Stanley were forced to shelve the debt package backing the year’s largest leveraged buyout -- $5.5 billion meant to fund Carlyle Group LP’s purchase of Veritas, Symantec Corp.’s data-storage business, according to two people familiar with the matter.