S&P warns of overheating in leveraged loan market

Excessive demand for European leveraged loans is leading to increasing appetite for risk and could cause overheating, Standard & Poor’s warned in a study on Thursday.
"Low interest rates, coupled with a continued supply-demand imbalance, could lead to excessively borrower-friendly lending standards and more highly leveraged transactions," S&P said. "This could prove highly destabilising for credit quality."
The rating agency said the market was "not yet in the danger zone" but added that leveraged ...Already a subscriber? Login
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