Fed criticises leveraged loan market, but its bark is still worse than its bite

By Ross Lancaster
13 Nov 2014

US regulators have yet again reminded leveraged finance bankers that they are watching the market. The Federal Reserve and others criticised underwriting standards and lender optimism over Ebitda projections in a statement on Friday.

The Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp gave concentrated attention to leveraged lending in their inter-agency Shared National Credit Review.

The regulators cite “serious deficiencies in underwriting standards and risk management of leveraged loans” in their ...

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