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An Unlikely Sector Leads the Way in Surge of Corporate Leveraged Loan Defaults

An Unlikely Sector Leads the Way in Surge of Corporate Leveraged Loan Defaults From Birch Gold Group The economic effects of the COVID-19 pandemic and recent Fed monetary policy continue to reveal themselves. The latest “reveal” that’s taking center stage is risky corporate leveraged loans, with defaults soaring to their highest levels since 2010 by issuer count, and since 2015 by rate. […]

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Satyajit Das: The CDO Bomb That Blew Up In 2008? There Is A New One

Satyajit Das: The CDO Bomb That Blew Up In 2008? There Is A New One In recent months, with the investor spotlight increasingly falling on the “leveraged loan problem”, or the fact that there are now more leveraged loans outstanding – most of them offering virtually no covenant protection to investors and effectively stripping them of their […]

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Debt is back but this time its corporate

Debt is back but this time its corporate On Wednesday Feb 7th 2007 HSBC issued a profit warning.  It was the first in its 142 year history. The bank told its share holders it would have to take an unprecedented charge of $10.5 billion because one of its units, its sub prime lender, was in […]

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Leveraged Loan Demand Is Off The Charts As Dangers Mount

Leveraged Loan Demand Is Off The Charts As Dangers Mount Ten years after the crisis, demands for leveraged loan offerings is once again off the charts. Portfolio managers who are seeking rising yields as the Federal Reserve hikes rates have shown unprecedented demand for recent deals, despite repeated warnings that they may be buying “at the wrong […]

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Treasury Warns Congress (and Investors): This Financial Creature Could Sink the System | Wolf Street

Treasury Warns Congress (and Investors): This Financial Creature Could Sink the System | Wolf Street. Office of Financial Research slams Leveraged Loans In its 2014 Annual Report to Congress, the US Treasury’s Office of Financial Research, which serves the Financial Stability Oversight Council, analyzed for our Representatives the “potential threats” to the US financial house […]

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