Wall Street Banks Eye Debt Sale to Recoup Elon Musk's Twitter Buyout
Key Points:
* Morgan Stanley and Bank of America plan to sell portions of Twitter debt acquired during Musk's 2022 takeover.
* Banks seek to recover around 90-95 cents on the dollar through senior debt sales.
* Incentive includes a claim on X's stake in Musk's AI startup, xAI Corp.
* Banks provided $13 billion in financing for the Twitter deal, which has since declined in value.
* Sale aims to mitigate losses and capitalize on improved outlook for X due to Musk's alliance with Trump.
* Trump administration's potential regulatory changes are expected to boost investment banking and dealmaking.
* Morgan Stanley's fourth-quarter profits doubled, indicating a Wall Street revival.