Private equity and leveraged finance markets
The credit market turmoil since mid-2007 has substantially affected the terms and conditions of funding in leveraged finance markets. Rising investor risk aversion, growing pressure on bank balance sheets and a loss of confidence in structured credit products have sharply reduced demand for leveraged loans. The materialisation of warehouse risks from failed leveraged loan syndications contributed to unwanted expansion of bank balance sheets and has affected credit supply. The knock-on effects from deteriorating conditions in leveraged loan markets have also affected private equity financing. Against the background of these developments, the working group report on private equity and leveraged finance markets under the chairmanship of Henk Brouwer of the Netherlands Bank addresses two broad questions. First, what have been the important trends during the period of rapid growth in the markets for leveraged finance, private equity and leveraged buyouts, and how has market growth affected incentives and corporate structures? Second, how have leveraged finance markets performed since mid-2007, which risks have surfaced, and what preliminary lessons can be drawn for financial stability?.
|This book is provided by Bank for International Settlements in its series CGFS Papers with number 30 and published in 2008.|
|Contact details of provider:|| Postal: Centralbahnplatz 2, CH - 4002 Basel|
Phone: (41) 61 - 280 80 80
Fax: (41) 61 - 280 91 00
Web page: http://www.bis.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven Kaplan & Antoinette Schoar, 2003. "Private Equity Performance: Returns, Persistence and Capital," NBER Working Papers 9807, National Bureau of Economic Research, Inc.
- Jerry Cao & Josh Lerner, 2006.
"The Performance of Reverse Leveraged Buyouts,"
NBER Working Papers
12626, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:bis:biscgf:30. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Beslmeisl)
If references are entirely missing, you can add them using this form.