Thursday, August 2, 2007
US investment bank already reeling from the American sub-prime crisis, said that it had halted redemptions in another of its hedge funds as nervous investors tried to pull their money out.
Leading investment banks on both sides of the Atlantic are saddled with almost $500 billion (£246 billion) in agreed leveraged loans that they are unable to parcel out to other investors. New figures from Dealogic reveal that in Europe the banks are struggling to clear a backlog of $208 billion worth of leveraged loans that they would normally have sold on through syndication. In the United States, the figures also show that investment banks are stuck with $269 billion of agreed loans that they are unable to syndicate.