Bankers Bet Big on 2026 After Underwriting $65 Billion in Deals

Leveraged finance bankers have long anticipated the return of M&A. Now they’re betting that next year they might finally be right.

Banks have underwritten around $65 billion of debt tied to leveraged buyouts for 2026, according to Bloomberg calculations, fueling hopes for one of the strongest years so far this decade. Dealmakers are banking on markets remaining calm enough to sell on those commitments to investors.

Get it right, and they’ll pocket some of the most lucrative fees in investment banking. Get it wrong, and they risk a repeat of 2022’s painful losses.

“We expect an increase in LBO ...