What if high-yield debt markets face more than just a nasty bout of indigestion? If investors’ rejection of senior debt tranches from recent mega buy-outs of Alliance Boots and Chrysler signals a longer-term change, it raises serious questions about the business models of the new kings of Wall Street – especially for those that now have the scrutiny of a public market listing.

Take Blackstone. The private equity group has raised ever-bigger funds in anticipation of pulling off ever-bigger deals to put the money to work. That has been a great strategy for a while. There is less competition for huge deals, meaning prices sometimes do not get quite so stretched, and huge companies can be less risky than smaller businesses. The private equity firm can book big deal fees upfront from a single transaction. And, with a limited number of investment professionals, Blackstone can put large amounts of money to work quickly.