Wednesday August 15 – Skin in the game

"It was PIKs and toggles," he rolls his eyes, as if someone else had forced him to do this deal or cheekily agreed it in his name. "It was covenant lite and even what covenants there were were rubbish ones." After weeks of wrangling over how to bring the senior secured portion of the financing to market, his own banks' team and that of the LBO sponsor were barely on speaking terms.

The week Wall Street went into meltdown

The day starts unhappily with the news that a Merrill Lynch analyst has put out a sell recommendation on Countrywide, the biggest source of mortgage loans in America, which even discusses the circumstances – the evaporation from a panic-stricken capital market of the liquidity Countrywide needs to fund its holdings of mortgages and the difficulty of selling on any of those assets not eligible for guarantee by Fannie Mae and Freddie Mac – in which it might go bankrupt.

Wednesday August 15 – Skin in the game

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Wednesday August 15 – Skin in the game

Thanks for your interest in Euromoney!To unlock this article:

Regulators should be upfront with taxpayers – and admit all deposits are guaranteed

The Danish Compromise tests Europe’s appetite for regulatory easing

What can US bankers really expect from Trump’s deregulation impetus?

Prem Natarajan on Capital One’s AI stairway to heaven

Thanks for your interest in Euromoney!
To unlock this article: