Buyout deals like Twitter won’t come cheap for banks

wsj

3 min read . Updated: 12 Oct 2022, 07:09 PM IST Telis Demos, The Wall Street Journal

Selling off the debts of highly indebted companies to investors suddenly demanding much higher yields can be painful, as it was for banks financing the buyout of Citrix Systems (Photo: Reuters) — Selling off the debts of highly indebted companies to investors suddenly demanding much higher yields can be painful, as it was for banks financing the buyout of Citrix Systems (Photo: Reuters)

Not only is the market tough for selling off loans, but also banks have to reckon with their own capital constraints

Providing debt to finance Elon Musk’s takeover of Twitter won’t be easy. But it isn’t impossible.