Japan Lobby to Steer Banks on Tackling Booming LBO Business

Japan’s main banking lobby plans to establish risk management guidelines for lenders offering leveraged loans to finance mergers and acquisitions deals as transactions soar in the country, according to people familiar with the matter.

The guidance will be released by the Japanese Bankers Association this month as part of a report on funding leveraged buyout deals, said the people, who asked not to be identified as the discussions are confidential. Such guidelines aren’t binding but are in practice followed by members of the powerful association.