Loose US lev fin standards point to credit cycle peak, says Fitch

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By David Bell
03 Apr 2018

A “significant” loosening of underwriting standards in US leveraged finance points to the market being in the late stages of the credit cycle, said Fitch Ratings on Tuesday, but market data show bids are still heating up in the sector.

Increasingly aggressive documentation, pricing and leverage in new deals are pointing to the market being in a late stage of expansion, the rating agency said on Tuesday.

A number of factors have pushed the market in this direction.

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