The leveraged loan market begins the week in "disarray" following the collapse of efforts to syndicate $14bn of the debt used to finance the $27.8bn buy-out of Harrah's Entertainment, bankers say.

The group of banks backing buyers Apollo Management and Texas Pacific Group are having trouble selling on the leveraged buy-out debt to third parties. With the bulk of the debt remaining on their books, the banks are sitting on a sizeable loss.