Exact(20)
They gobble up competitors with leveraged deals.
But they also busted up a lot of lives with leveraged buyouts that inflicted heavy casualties.
As the recession progresses, many borrowers with leveraged loans will seek to modify terms, said Alan L. Todd, an analyst at JPMorgan Chase.
As with leveraged buyouts, the power of private equity, and the wellspring of its remarkable profits, is leverage — the use of borrowed money.
Last year, as many as 21 European companies with leveraged loans negotiated a covenant waiver, more than four times the five waiver requests in 2007, according to Standard & Poor's, a credit ratings agency.
While those write-downs have been only a small part of the losses that the banks have reported so far, many analysts expect problems with leveraged loans to grow.
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CommScope : Shares of the network infrastructure company shot up 33.1% at the start of the trading session to touch an intraday high of $30.77 on news it is in talks with leveraged-buyout firm, Carlyle Group to be taken private for around $2.98 billion or $31.50 a share in cash.
Rick Scott, convinced that the nonprofit hospital industry was ripe for the changes that would come from a profit motive, set up Columbia, at age 34, with $125,000, beginning his acquisitions process with two leveraged buyouts of El Paso, Tex.
Hedge funds with large leveraged positions in municipal bonds contributed to the situation.
Traditionally the market had relied on taking companies over with highly leveraged deals.
"If you've acquired property with highly leveraged capital, you've got a problem," he said.
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