Wall Street banks, sitting on an estimated $50bn of buyout loans they need to sell to investors, are testing the waters to see if they can start offloading the debt.
Credit Suisse Group AG is looking to sell a $3.35bn loan to finance the buyout of auto dealership software company CDK Global Inc. It’s one of the biggest sales of the debt this year, and it comes after loan prices have edged higher in recent days.
The recent slight gains came after the Federal Reserve signaled that it might pause rate hikes later this year, giving investors more hope that a recession will be averted. That may give banks an opening to sell around $50bn of loans and about $30bn in bonds on their books for buyout financing, according to recent Deutsche Bank AG estimates.
Read more: BNN Bloomberg
