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The
biggest U.S. lenders, including Bank of America and Citigroup,
wrote down $1 billion in the second quarter on leveraged and
bridge loans as rising interest rates made it tougher for banks
to offload debt to investors and other lenders.
Below is a compilation of write-downs that global banks took
during the second quarter:
BANK OF AMERICA
Bank of America said it took mark-to-market losses related to
leveraged finance positions in the second quarter.
Chief Financial Officer Alastair Borthwick said the market
turmoil and abrupt slowdown in the second quarter sparked a
downturn in leveraged finance markets, causing a number of deals
to get marked down.
CITIGROUP Citigroup Inc wrote down $126 million in the second
quarter.
CFO Mark Mason said leveraged finance was under considerable
pressure, but noted that Citigroup was not a big player in the
market.
WELLS FARGO
Wells Fargo & Co took a $107 million write-down due to a
widening of credit spreads.
CREDIT SUISSE Credit Suisse said it suffered mark-to-market
losses of 235 million Swiss Francs ($247.45 million) in
leveraged finance.
JPMORGAN
JPMorgan took a $257 million markdown on its book of bridge
loans.
"I think we made conscious choices here to dial back our risk
appetite and accepted some share losses in leveraged finance,"
CFO Jeremy Barnum said.
DEUTSCHE
Deutsche Bank also took a hit on its leveraged loans book as the
dealmaking outlook turned sour with rising interest rates and
extreme market volatility caused by the Russian invasion of
Ukraine.
Deutsche took a write-down of 150 million euros in the quarter.
BARCLAYS
Barclays marked down some leverage finance transactions as it
managed its deal pipeline, said Anna Cross, the bank's finance
director.
($1 = 0.9497 Swiss francs)
(Reporting by Saeed Azhar; Editing by Richard Chang)
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