Banks put their heads on the block

THIS YEAR DOZENS of bought deals have hit the equity markets as cash-hungry vendors rush to take advantage of short, sharp, news-driven rallies to offload non-core holdings. Banks that bid for these blocks do so with mixed feelings. Uncertainty, volatility and rabid competition have made them exceptionally risky. And vendors are forcing banks to take on more market and stock-specific risk than ever, pushing for fully bought deals or aggressive backstop agreements to guarantee price certainty.