LBOs High yield wobbles

The past few years have been perfect for leveraged buyouts. Private equity firms powered the return of takeover activity and became Wall Street’s biggest fee generators. But the wobbles in the junk bond market could slow the LBO craze. The recent credit bull market provided cheap access to capital for deals fuelled by leverage. With stock market returns poor and Treasuries yielding record lows, investors scrambled to own paper with juicier yields . This made it easy and cheap for private equity ...