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Leveraged Buyout Boom Is Seen Flooding Loan Markets for Months

  • Issuance expected to stay strong before dipping as rates rise
  • Private equity firms have $960 billion of dry powder

Sales of U.S. leveraged loans are likely to stay strong for at least the next few months thanks to private equity buyout activity that is showing few signs of abating.

There are deals already in the pipeline, including Hellman & Friedman and Bain Capital’s leveraged buyout of Athenahealth Inc. That transaction is expected to include $10 billion of debt, at least some of which will probably be loans.