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Banks Stuck With $1.6 Billion of Unsold Loans Amid Market Rout

  • Barclays, Goldman and BofA among lenders keeping debt on books
  • At least four deals failed to clear the market this month
Barclays Plc Headquarters And Bank Branches As Company Considers Dublin For Their EU Base
Photographer: Luke MacGregor/Bloomberg

A rout in the once-hot market for risky corporate loans has some of Wall Street’s largest banks stuck with at least $1.6 billion of unwanted leveraged buyout debt.

Banks including Barclays Plc, Goldman Sachs Group Inc. and Bank of America Corp. -- among the top providers of loans for LBOs -- have struggled in recent weeks to sell loans they’ve agreed to make for private equity deals, as concerns about the global economic outlook spurred investors to flee risky assets.