Private Equity
Amid fierce competition for business, the balance-sheet lending operations of some banks have grown more willing to originate higher-leverage loans.Shops that previously limited loan-to-value ratios to 65% have lifted the ceiling to 70-75%, structuring the added component as mezzanine debt that will be sold to third parties. The goal is to attract borrowers by providing “one-stop shopping.”“The borrowers love that execution,...