Regulators Find “High Level” of Risk in Syndicated Loans
Leveraged loans and loans to oil & gas companies continue to represent a large percentage of the problem credits.
Key Libor Rate Tops 1% for First Time in 7 Years
The benchmark rate for $350 trillion worth of financial products worldwide has risen nearly 0.40 percentage point over the past year.
Symantec Agrees to Accept $1B Less for Veritas
The new agreement will boost the equity portion of the deal to 40% from 33%.
One-Third of Leveraged Loans Structurally Weak
But the Shared National Credits Review also found “improved compliance” with federal leveraged lending guidelines in the second half of this year.
China Corporate Debt Growth Seen as High Risk
S&P estimates that China's corporate debt pile, now at 160% of GDP, will climb 77% to $28.8 trillion over the next five years.
Bank's credit underwriting standards loosened considerably in 2014, especially among commercial loan products, says the OCC.
Wilting Demand May Hit Leveraged Loan Market
Continued outflows from mutual funds and a slowdown in CLO issuance could pose a problem for issuers in 2015.
Leveraged Loan Underwriting Has “Serious Deficiencies”
Leveraged loans show evidence of "risk management weaknesses," including dated valuations and poor credit analysis, regulators said in an annual review.
Credit Suisse Gets Fed Warning About Leveraged Loans
The bank's underwriting and sale of leveraged loans may not be in compliance with regulatory guidance issued just last year.
Two-Thirds of Leveraged Issues Lack Lender Protections
Most new leveraged loans are covenant-lite and carry ratings well-below investment grade from Standard & Poor's.