Commercial vs. investment banks and leveraged loans

When it comes to managing leveraged loans, the Financial Times notes that commercial banks have an advantage. Whereas investment banks have to mark their loans to market, commercial banks can choose to hold the loans in portfolio until they mature. JP Morgan Chase said recently they will hold some loans because they thought the market was undervaluing them. This does involve some capital commitment, however. As for investment banks, get ready for more pain. Deutsche Bank analysts predict Goldman Sachs and Morgan Stanley will write off at least $1 billion in leveraged loans. Lehman Brothers likely will do the same.  

For more:
- here's the Financial Times article