Leverage nears pre-crisis heights as regulators soften stance: Reuters

Leverage levels for buyouts are close to pre-credit crisis levels as banks are more willing to underwrite highly leveraged deals following the Office of the Comptroller of the Currency’s softened stance towards lending risk, Reuters reported. So far during Q2 2018, leverage for U.S. buyouts averages 6.57 times, the highest level since it reached 6.65 times during Q3 2014. Leverage at this level had not been seen before that since 2007, before the credit crisis hit when leverage on buyouts topped out at 6.8 times on average.

31 May 2018•3 mins read
NEA, venture capital, Ravi Viswanathan
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