Monday, May 21, 2007

LBOs Attack Finance Company Bonds; SLM, CIT American Express Debt Unravels

(Bloomberg) -- Finance company bonds, the fastest-
growing part of the corporate debt market, are no longer a haven
from leveraged buyouts.

Bondholders were ambushed by last month's $25 billion
takeover of SLM Corp., the student loan company known as Sallie
Mae. They had assumed that companies whose profits depend on
investment-grade credit ratings couldn't afford to pile on debt.


Read more at Bloomberg Bonds News

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