Deals
Banks Have $13 Billion of Junk Debt They Can’t Wait to Sell
- Takeover financing agreed in benign conditions pre-pandemic
- Closed market leaves banks to stump up funding themselves
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For banks sitting on a pile of high-risk debt they’ve been unable to sell, the full return of Europe’s junk debt market cannot come too soon.
Amid the upbeat mood that prevailed before the coronavirus struck Europe, banks agreed to provide nearly $13 billion of bonds and loans to support acquisitions. They planned to sell this debt to eager investors--only to see the markets slam shut.