Investors Strike Back

It would appear that the distinct lack of confidence that I alluded to yesterday, (see here) has led to one or two interesting developments in the primary markets (the market for new debt issuance). Private equity houses KKR, Clayton and Dublier & Rice were, yesterday, forced to drop their bond offering funding the acquisition of US Foodservices. Covenant weak leveraged loans have also been receiving short shrift of late. Earlier this week Arcelor Mittal were also forced to pull their bond offering “pending more stable conditions.”

These developments will be a concern, especially to those banks who will have provided bridging finance and now have their capital tied up, at least until investors can be persuaded to part with some cash.


The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Stefan Isaacs

Job Title: Deputy CIO Public Fixed Income

Specialist Subjects: Bonds

Likes: Football, travel and the prospect of retirement

Heroes: Sir David Attenborough, Bill Shankly and Theodor Herzl

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