Deals
Banks Offer Bargains on Unwanted Leveraged Loans
- BofA, Deutsche Bank among lenders looking to unload loans
- Inventory of lenders’ unsold loans is at least $3.6 billion
This article is for subscribers only.
Banks are sitting on at least $3.6 billion of risky corporate loans they struggled to sell in December, and the market is finally thawing enough for them to start offloading the debt.
They’re offering discounts and improving terms to move loans off their books that they wouldn’t normally have hung onto, potentially suffering losses in the process. Bank of America Corp. sold investors chunks of $400 million of loans made to C&D Technologies, a battery company, for somewhere between 88 and 90 cents on the dollar, according to people with knowledge of the matter. That would be the steepest discount on a U.S. leveraged loan in two years.