Banks Stuck With Over $2 Billion of Loans as Investors Cut Risk
- Shutterfly, Monotype among deals that struggled to sell
- Slowdown concerns crimping demand for the riskiest debt
Skyscrapers stand in the City of London's square mile financial district
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Risky corporate loans are gradually piling up on the books of some of the world’s largest banks.
Underwriters that agree to provide funds for buyouts are rarely forced to come up with the cash themselves, instead offloading the exposure to investors before deals close. Yet lenders including Barclays Plc and Deutsche Bank AG have been left holding over $2 billion of leveraged loans that they’ve struggled to sell over the past several months, according to people with knowledge of the matter.