Eurozone crisis threatens tightening loan trend

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Eurozone crisis threatens tightening loan trend

Margins on investment grade loans have been tightening since the start of the year but contagion from the sovereign crisis could stall the rally. As banks’ own funding costs rise, some market participants warn that those who have been pushing the trend for aggressive tightening will be forced to pull back. Read EuroWeek on Friday for more on how the loan market is coping with growing funding problems.

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