Leveraged loans

A $40 billion pile of leveraged loans is battered by big losses


Barely noticed in a corner of the financial markets, leveraged loans originally worth about $40 billion are staging their own private meltdown.


Red flags worrying lawmakers 11 years after financial crisis


Members of the House Financial Services Committee cited leveraged lending, cybersecurity and the switch to a new interest rate benchmark among potential systemic risks that keep them up at night.


Easy credit's latest twist: Loans to companies with no income


By turning to investors outside traditional banking, private-equity firms are finding it easier than ever to get loans to finance their buyouts of corporations that are nowhere close to being profitable.


What to make of banks’ growing exposure to leveraged loans


Fresh data from the Fed, FDIC and Bank of England shows that, directly or indirectly, banks are taking on more leveraged loans. But whether this puts their loan and securities portfolios at risk remains open for debate.


Warren warns consumer, corporate debt could cause next crisis


The Democratic presidential candidate argued in a blog post that the U.S. could avoid a recession by canceling most student debt and authorizing regulators to more aggressively monitor leveraged lending.


Regulators need more tools to keep system safe: Boston Fed chief


The U.S. lacks mechanisms authorized in other countries to flag nonbank risks, Eric Rosengren says.


HSBC's new U.S. chief, Pittsburgh turf war, leveraged loan jeopardy: Top stories of the week


Citi’s chief lending officer to take over HSBC’s U.S. business; Pittsburgh banks brace for incursion of industry heavyweights; borrowing by nonbank leveraged lenders is growing (maybe too much); and more from this week’s most-read stories.


Lending to nonbank lenders is growing — maybe too much


Loans to other financial firms have soared in recent years, and many are going to private equity or business development firms that then use the funds to make leveraged loans. Should regulators be worried?


Banks exposed to possible loan market tumult, BIS says


Banks may be exposed to a shakeout in the $1.3 trillion leveraged-loan market even though they mostly own the safest portions of debt, according to the Bank for International Settlements.


Is leveraged lending a systemic risk?


Lending to companies with heavy debt loads is a growing business — one that many fear could lead to the next financial crisis.