Banks Said to Offer $1.3 Billion of Loans to Unwind Swaps
- Citi and Truist each conducted loan auctions on Tuesday
- Loan prices plunged below 80 cents to more than 10-year lows
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Citigroup Inc. and Truist Financial Corp. are among banks that have been selling off hundreds of millions of leveraged loans to help unwind swap trades tied to the debt, according to people familiar with the matter.
The banks solicited buyers for around $1.3 billion in two separate leveraged loan auctions on Tuesday, said the people, who asked not to be named discussing private transactions. About half of the loans seeking bids ultimately traded, the people added.