Thursday, July 5, 2007

LBO Debt Proves Treacherous for Fidelity, Lehman Brothers, TIAA-CREF Funds

(Bloomberg) -- The world's biggest bondholders have
had their fill of leveraged buyouts, convinced that increasing
mortgage delinquencies will drag down the U.S. economy and drive
debt-laden companies into default.

TIAA-CREF, which oversees $414 billion in retirement funds
for teachers and college professors, is boycotting some debt
offerings used to finance LBOs. Fidelity International, a unit of
the world's largest mutual fund company, and Lehman Brothers
Asset Management LLC, the money-management arm of the third-
biggest bond underwriter, say they're avoiding debt from buyouts.


Read more at Bloomberg Exclusive News

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