Leveraged Finance Revs Up But Not All Sellers Are Ready to Deal

It’s turning into a sellers’ market once again in leveraged finance, with all that implies, including an asset-sales revival on the horizon and investors so willing that risk management becomes a lesser priority.

Discussions among bankers and investors at the Goldman Sachs Leveraged Finance and Credit Conference in Rancho Palos Verdes, California produced an overwhelming consensus that leveraged buyouts are about to return after a hiatus spurred by rising interest rates.

After all, conditions are right. Rates have stabilized in the Federal Reserve’s higher-for-longer environment. Private equity and direct lenders combined have about $1.6 trillion that needs to be ...