Banks that lent to Elon Musk to book Twitter loan losses, avoid hits

Besides Morgan Stanley, the syndicate includes Bank of America Corp, Barclays Plc, Mitsubishi UFJ Financial Group Inc, BNP Paribas SA, Mizuho Financial Group Inc and Societe Generale SA

Banks that lent Elon Musk $13 billion to buy Twitter are preparing to book losses on the loans this quarter, but are likely to do so in a way that it does not become a major drag on their earnings, according to sources with direct knowledge.

Banks typically sell such loans to investors at the time of the deal. But Twitter’s lenders, led by Morgan Stanley, could face billions of dollars in losses if they tried to do so now, as investors shy away from buying risky debt during a period of economic uncertainty, market participants said. 

In addition, Twitter has seen