- Leveraged
finance is an area of banking used by private-equity firms to raise debt for acquisitions or recaps. - High-yield bond and leveraged loan markets have reached a collective $3 trillion.
- Insider talked to the top levfin bankers driving the boom to learn more about their careers and outlook.
Leveraged finance, an area of banking typically used by private-equity firms to raise debt for acquisitions or recapitalizations, is in the midst of a "golden age," according to Jeff Cohen, the head of leveraged and acquisition finance at Credit Suisse.
Cashed-up private-equity firms from KKR to Blackstone are making a spate of $4 amid attractive conditions for borrowers - thanks to rock-bottom interest rates. Investors starved of meaningful yield in the fixed-income markets, meanwhile, are more willing to buy riskier, leveraged loans and high-yield bonds in their search for returns.
In light of this backdrop, high-yield bond and leveraged loan markets have reached a collective $3 trillion, according to S&P Global Market Intelligence. Fees vary depending on the type of transaction, but sources said banks are on track to pocket a minimum of $7.5 billion in leveraged-finance transaction costs this year.
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Insider talked to some of the industry's stalwarts, as well as smaller shops that are looking to climb the rankings and disrupt the