Tuesday, September 4, 2007
This week, in what is expected to be a test of the credit markets, seven banks will be offering for sale $24 billion in loans and bonds to finance the LBO of First Data Corp. to Kohlberg Kravis Roberts. In the next few months, over $330 billion in LBO debt needs to be financed. NYTimes, Banks to Test Debt Market This Week; WSJ, LBO Players Will Jockey Over Terms.
The Wall St. Journal's Heard on the Street column reports that the shares of Lehman Brothers are down 30%, just behind Bear Stearns as the worst-performing investment bank. Lehman is more dependent on the bond market than most of the other investment banks. WSJ, It's Déjà Vu for Lehman Stock.