Are bond investors about to throw water on the private equity parade? We'll see. This week, Cerberus Capital Management will start its road show for $62 billion in bonds to support the $7.4 billion buyout of Chrysler. First Data, owned by Kohlberg Kravis Roberts, will be selling bonds next month. TXU will try to sell about $24 billion in bonds at some point this year. With rates poised to climb, some institutions seem to be developing cold feet. The New York Times notes that buyers have forced issuers such as Thomson Learning and U.S. Foodservice to lower their expectations. We've spoken about the effect of rates on the industry. A rate spike would certainly be a major thorn to deal with. Banks are also in a mood to no longer accept the lenient financing terms. A shift, long discussed, may already be underway.

For more:
- here's the NYT article