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From today's WSJ...
"This week, Wall Street underwriters made a second attempt at selling roughly $4 billion in loans tied to Chrysler LLC's automotive business, in which a majority stake was acquired by Cerberus Capital Management LP in August. It looked like a sign of the market's improvement, then rough conditions in the junk-bond market forced bankers to call off a $750 million bond sale to finance the leveraged buyout of Guitar Center Inc., a retailer of musical instruments.
The Guitar Center postponement was the first since August, bringing back memories of the disorder in the corporate-debt markets during the summer, when dozens of buyout-debt offerings were pulled. A separate $650 million sale of loans by Guitar Center went through this week, as did some other junk-bond sales, but values of many leveraged loans and junk bonds fell sharply."
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"This week, Wall Street underwriters made a second attempt at selling roughly $4 billion in loans tied to Chrysler LLC's automotive business, in which a majority stake was acquired by Cerberus Capital Management LP in August. It looked like a sign of the market's improvement, then rough conditions in the junk-bond market forced bankers to call off a $750 million bond sale to finance the leveraged buyout of Guitar Center Inc., a retailer of musical instruments.
The Guitar Center postponement was the first since August, bringing back memories of the disorder in the corporate-debt markets during the summer, when dozens of buyout-debt offerings were pulled. A separate $650 million sale of loans by Guitar Center went through this week, as did some other junk-bond sales, but values of many leveraged loans and junk bonds fell sharply."
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