Market rout has Barclays, other banks stuck with $1.6 bn of unsold loans

A rout in the once-hot market for risky corporate loans has some of Wall Street’s largest banks stuck with at least $1.6 billion of unwanted leveraged buyout debt.

Banks including Barclays Plc, Goldman Sachs Group Inc. and Bank of America Corp. -- among the top providers of loans for LBOs -- have struggled in recent weeks to sell loans they’ve agreed to make for private equity deals, as concerns about the global economic outlook spurred investors to flee risky assets.

At least four loan sales for buyouts and acquisitions have failed to clear the market so far this month, forcing the banks