US investor appetite for credit put to test

Friday 11 January 2008 at 17:39

US investors’ appetite for leveraged credit is set to be put to the test next week when banks try to garner sufficient demand for the loans backing the buyout of casino operator Harrah’s Entertainment and the bonds of troubled bond insurer, MBIA.

Each transaction, while in different sectors, will provide insight into the level of confidence investors have in the stricken leveraged finance and financial institution bond markets after months when they have shunned such debt.