Moody’s Spotlights Risky Leveraged Lending
Covenant protections on highly leveraged loans continue to weaken, meaning lenders will be vulnerable if a borrower experiences financial distress.
Junk-Rated Loans Could Incur Big Losses: OCC Comptroller
Should the economy come under stress, a large number of leveraged loans could default and cause record losses, according to one banking regulator.
As Banks Loosen Underwriting, Credit Risk Rises
Examiners find U.S. banks reducing collateral requirements and loosening covenants on business loans. Particularly the highly leveraged kind.