TLDR: Wall Street banks, including Goldman Sachs, Citigroup, and Barclays, are reportedly looking to win back leveraged finance deals that were previously taken up by direct lenders. The banks are approaching buyout firms to discuss refinancing private credit loans that were signed when credit spreads were wider, and now that the leveraged loan markets have calmed down, they want to regain this business. Investment banks could offer cheaper deals than direct lenders due to falling borrowing costs in the leveraged finance market and provide more flexibility with fewer covenants. However, direct lenders may offer lower rates, higher leverage, or other incentives to retain deals. There are also factors such as regulatory guidelines, geographic limitations, and competition from banks building their own direct lending operations that could impact the banks’ ability to win back this business.
Wall Street banks keen to reclaim lost loan deals from private credit.
