Jump in private equity deals puts corporate balance sheets at risk, says BoE

The UK's Bank of England has warned that a sharp jump in borrowing linked to private equity deals has left corporates at increasing risk of defaulting on loan commitments.

A wave of leveraged buyout (LBO) activity in the UK, which has recently seen takeovers of BAA, the airports operator, and Associated British Ports, the ports group, has raised the average annual default probability of UK