by Calculated Risk on 9/27/2007 10:21:00 PM

From the WSJ: Bond Market Starts Showing Relief Signals

... Wall Street investment banks yesterday sold investors $9.4 billion in risky bank loans issued by First Data Corp. to finance its leveraged buyout.

It was the largest sale of leveraged loans since that of HCA Inc. last year. It was also nearly double the $5 billion in loans the banks said they were attempting to sell.

Still, the underwriters, which include Credit Suisse and Citigroup Inc., hold on their own books the bulk of the $24 billion in loan financing they provided for First Data.

Selling loans for 96 cents on the dollar is considered good news in this environment. Maybe Credit Suisse and Citigroup can sell more, and make up the loss with volume!

The key number is the $14 billion or so in pier loans. The total deal value was $26 billion with $24 billion in debt. This is still larger than the Chrysler pier loans that were only $10 Billion.