S&P warns of overheating in leveraged loan market

Overheating 230x150
By Olivier Holmey
10 Apr 2014

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 ...

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