Credit Suisse has angered its fellow underwriters on the Harrah’s leveraged financing by selling some of the debt quietly, rather than preserving unity and holding on. But with the market this bad, normal etiquette is bound to be suspended — it is every bank for itself.
If there is any consensus in the leveraged loan market, it is that the market is in trouble.
The biggest problem is the mountain of debt on underwriting banks balance sheets, which they cannot sell for love nor money. This leaves banks with a double problem: how do