Private Credit Funds Swoop In to Bail Out Banks’ Riskier Bets
- Covis due to follow Morrison’s lead offloading junior debt
- Banks swallow heavy discounts to avoid being stuck with loans
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Banks are turning to private credit markets to help them offload riskier parts of the deals they underwrote before markets turned sour.
Barclays Plc, HSBC Holdings Plc, Mizuho Financial Group and others are expected to hold talks with private credit funds to offload part of Apollo Global Management Inc.’s $1.2 billion buyout of Covis Pharmaceuticals Inc. The move follows the sale of a chunk of the financing behind the buyout of Wm Morrison Supermarkets Plc to Canada’s biggest pension plan.