Not even investors fleeing mutual funds that buy junk-rated U.S. corporate loans is enough to keep Cerberus Capital Management LP from tapping the market to finance its $9.2 billion bid for Safeway Inc.
Cerberus will begin raising $6.7 billion in loans today to fund its buyout of the grocer and merge it with Albertsons. Less than a week ago, mutual funds that invest in the debt posted their biggest withdrawals in almost three years, bringing redemptions since mid-April to more than $3 billion.
While small investors flee and U.S. regulators are stepping up pressure on banks to refrain from underwriting deals deemed too risky, those with the most at stake are plowing ahead in a market that has delivered returns of almost 100 percent since the end of 2008.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
