If companies can't obtain junk debt financing through traditional sources with virtually no covenants, private equity underwriters (PEU) stand ready with mountains of cash to "help out." Here's the irony: PEUs loaded up affiliates with junk debt, often to line their pockets with borrowed dividends.
Now they want to provide financing to those who don't meet Wall Streets paltry standards? Hardly, PEUs want to take over companies by owning debt, not equity which disappears when a company declares bankruptcy. Notice that The Carlyle Group's CLO Funds will invest in senior secured bank loans. That's the lever for a backdoor takeover.
PEU Report/State of the Division