Leveraged Loan Sales Frenzy Is Getting More Intense as LBOs Boom

July 16, 2021, 8:41 PM

Leveraged loan issuance is running at a record pace and there’s no end in sight as buyout activity surges.

Supply has already exceeded $300 billion in the U.S., far surpassing any other year since Bloomberg began tracking the data in 2013, not including repricings. New money activity -- for leveraged buyouts, mergers and acquisitions, dividends and other capital expenditures -- accounted for $204 billion of sales and it’s about to get even more frantic, say bankers.

“The M&A market is exceptionally strong,” said Peter Toal, global co-head of fixed income syndicate at Barclays Plc. “After inflation and taxes are ...

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