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The Bank-Loan Haircut

Wall Street Journal Original article ›

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How the banks and investment firms are trying to sell some of the risky loans and securities to buyers. Citigroup is selling some corporate debt at 90 cents to the dollar and Morgan Stabnley has created 13.4 billion of Collaterized Loan Obligations CLO's that it can pass on to the Federal Reserve as collateral in the future. Goldman Sachs sold some of the Chrysler debt at 63 cents to the dollar so there is concern thathis may drive down prices. In addition Citigroup provided $9 billion of the financing for the $12 billion sale of corporate debt in its deal with Blackstone and other firms. The idea is to free these banks up so that they can have more money to lend but it will take time.

Blackstone group private equity

05/17/2005

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Blackstone Gains From Banks’ Financial-Crisis Pain

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Blackstone Earmarks $1 Billion For Investment Fund in India

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China Puts Cash To Work in Deal With Blackstone

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Blackstone Is Just A Blip

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