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CNBC's Liesman: Credit Jitters Cause Problems for Chrysler Financing

There are furious behind the scenes negotiations to place $12 billion of debt to finance the Cerberus buyout of Chrysler.

The deal is still not done and there is talk that the interest rate Cerberus will have to pay will be substantially higher than originally envisioned.

Also, there's talk of offering investors in the most secure part of the debt additional protection with a so-called first loss provision. In that case, senior creditors will have some initial buffer from potential losses.

A spokesperson for Cerberus declined to comment on the transaction, but said they remain confident the financing will be in place. A person familiar with the deal said it could close as early as next week. Traders says that's probably true, it'll just cost more in financing.

Meanwhile, the Wall Street Journal reports that sales of $3.1 billion in loans have been postponed that would have paid for the leverage buyout of Allison Transmission from General Motors by the Carlyle Group and Onex.

The deal is still likely to get done, but bankers ran into a skittish market that is reluctant to take on high-yield debt.

The deals highlight the risk to stocks and the economy from troubles in the bond market: fewer buyouts and fewer buybacks.

In fact, both Lehman and Morgan Stanley say we're are on the back nine of the corporate credit cycle and that means more volatility ahead for stocks.

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