It’s already bleak for Wall Street banks that struggled to sell risky debt to fund leveraged buyouts. Elon Musk’s revived deal for Twitter Inc. is only adding to the strain.
Banks have already been saddled with losses of about $600 million for the buyout of Citrix Systems Inc. and are still stuck with $6.5 billion of debt they couldn’t sell. They also had to shelve a $3.9 billion deal for Brightspeed after investors balked at the offer -- and are expected to soon fund the buyout of Nielsen Holdings, and possibly even Tenneco Inc.
