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When investment bankers agreed in January to underwrite the leveraged buy-out of Citrix, a software company, by a group of private-equity firms, returns on safe assets like government bonds were piffling. Yield-hungry investors were desperate to get their hands on any meaningful return, which the $16.5bn Citrix deal promised. Lenders including Credit Suisse and Goldman Sachs were happy to dole out $15bn to finance the transaction. Inflation would pass, central bankers insisted. Russia hadn’t invaded Ukraine, energy markets were placid and the world’s economies were growing.
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