Investment banks are showing as strong a herd mentality when it comes to getting out of their LBO investments as they did getting in to them. Recent weeks have witnessed a sudden rush of leveraged loan sales from institutions that have been grimly sitting on their $250 billion loan stockpile as prices in the secondary market have headed steadily south.
According to Bloomberg, secondary loan prices had recovered to 92 in late April, having hit a record low of 86.3 in February, so many banks have now grasped the opportunity to sell. But there...
