Standard Chartered Plc is in talks to support the leveraged-finance business of Credit Suisse Group AG’s investment-banking spinoff, according to people familiar with the matter.
(Bloomberg) —
Standard Chartered Plc is in talks to support the leveraged-finance business of Credit Suisse Group AG’s investment-banking spinoff, according to people familiar with the matter.
The London-based bank is discussing partnering with the New York-based boutique by providing lending capacity, the people said, who requested anonymity discussing confidential information. Standard Chartered wouldn’t invest in the new entity as part of any proposed transaction, one of them said.
The structure of any transaction could still change and it’s possible no agreement is reached.
Credit Suisse First Boston, led by Michael Klein, has separately discussed forming a leveraged finance balance sheet that would be helmed by an investment from Apollo Global Management Inc., Bloomberg News reported earlier this week.
Spokespeople for Standard Chartered and Credit Suisse declined to comment.
Read more: Apollo Mulls $750 Million First Boston Leveraged-Finance Bet
Standard Chartered CEO Bill Winters last year said his bank was well placed to take market share in leveraged finance, in part because a slew of rivals were hit with losses from hung loans.
“There’s been a lot of pain in the leveraged finance sector,” he said on an earnings call. “We are a meaningful leveraged finance player, but we’ve avoided the losses. I guess we’re more subtle about it. And that’s really good. It means, I think, we’re in a good position to take advantage of some opportunities that could come up as that market settles down.”
–With assistance from Harry Wilson and Myriam Balezou.
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