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JPMorgan thinks it can still sell buyout debt

June 26, 2013: 3:49 PM ET

Banker doesn't believe rising rates will put a damper on new leveraged buyouts.

FORTUNE -- Jim Casey, co-head of debt capital markets at JP Morgan Chase & Co. (JPM), said on CNBC today that there is enough "market depth" to help finance future leveraged buyouts.

The comments come in the midst of a particularly slow quarter for new private equity deals, during which firms have taken preferred to spend their time refinancing or selling existing portfolio companies -- the former due to low rates, the latter due to rising public equity comps. Now that rates are beginning to rise, however, there are some worries that new deal activity could be depressed for the foreseeable future.

Casey's basic argument is that private equity firms shouldn't be worried about finding buyers for leveraged loans, in part because his bank  received around $28 billion of orders for debt related to Berkshire Hathaway (BRKA) and 3G Capital's purchase of  H.J. Heinz Co. (HNZ). Casey acknowledged that the deal occurred months before talks of tapering (and with Warren Buffett's imprimatur to boot), but feels that such buyers have not gone away.

Watch the interview below. The LBO section begins at the 5-minute mark:

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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