Reply To: Morgan Stanley Advisory Revenue Nearly Doubled Offsetting Weakness in Underwriting


May 27 – Bloomberg (Jeannine Amodeo):

“Banks are facing the toughest market in months to sell leveraged loans for buyouts, leaving them at risk of lower fees or even potential losses. But they’re forging ahead anyway since there’s no obvious sign of a near-term catalyst which could help curb the meltdown. A group of banks led by Morgan Stanley was forced to slap one of the steepest discounts — just 92 cents on the dollar — on a $360 million loan to fund the buyout of manufacturer Therm-O-Disc Inc. this week after struggling to attract buyers. Another group of banks led by Bank of America… had to self-fund a $615 million loan supporting Bain Capital’s buyout of VXI Global Solutions after failing to place the debt with institutional investors. The secondary market remains under pressure with average prices hovering around 94 cents on the dollar.”