The world wants to borrow money for expansion, and the banks can't help.
Banks are confused by incompetent regulators, and dare not take risks.
* * * * * J B K * * * * *
San Francisco
BlackRock Inc., the world's largest asset manager, and Blackstone Group LP's GSO Capital Partners LP are forming mutual funds to invest in loans as the London interbank offered rate rises to the highest level since August.
The firms have joined Goldman Sachs Group Inc. in announcing funds investing in leveraged loans pegged to short- term interest rates. Investors poured more than $2.5 billion into bank-loan mutual funds in March and the first three weeks of April, more than triple the amount for March and April last year, according to Lipper FMI data.
http://www.bloomberg.com/apps/news?pid=20601010&sid=anQNxxSm8VyU
