The talks with KKR’s asset management arm have brought together the private equity firm responsible for some of the biggest leveraged buy-outs in the run-up to the credit freeze and the investment bank that agreed to provide the financing for many of the deals. Over the summer, investors’ appetite for leveraged debt dried up, leaving the banks unable to sell on their loans except at losses. There are rumours that the combined firepower of all the funds being raised to buy leveraged buy-out debt could equal as much as $170bn, which compares with the estimated $300bn of funding banks have committed to private equity firms. However, one issue that some investors and regulators are watching carefully is whether any sales of loans will be “true” transactions, at genuine market prices - or will be conducted at artificial rates, as part of a bigger commercial transaction, to flatter bank balance sheets. News | Politics | World News | Business | Sports | Tech/Science | Entertainment | Travel | Health | Blogs Etc. read more