Here is a simple question: what percentage of US banks’ balance sheets is taken up by loans to businesses? The answer may surprise some. It’s just under 11.5%, down from about 16% some 10 years back. Banks began preferring real estate loans (particular…
The answer is, they both love senior leveraged loans…The amount of US leveraged senior secured debt outstanding has risen sharply this year. According to LCD this market is now some $630bn in size.Source: LCD (the fluctuations include new l…
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With investor demand for leveraged loans remaining strong (see discussion), one structural component has not changed. The majority of new leveraged loans still have a LIBOR floor. That means these loans will pay a minimum coupon plus spread, no matter …
