Finance
As Wall Street Chokes on Bad Buyout Loans, Rivals Seize Opening
- Direct lenders look to provide record-size LBO financings
- Banks risk being elbowed out of fee-rich bond, loan deals
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For the titans of private credit, it’s a once-in-a-generation opportunity.
Wall Street’s vaunted leveraged finance desks are reeling. Billions of dollars in losses on mistimed loans have forced them to dramatically scale back lending, leaving the private equity firms that rely on them to help fund acquisitions in a bind.