Lautenschläger says some leveraged finance practices need watching
ECB’s head of supervision notes increase in ‘covenant-lite’ deals
Eurozone banks are increasing their exposure to leveraged finance while the market's "historical credit norms" are starting to "weaken", the European Central Bank's (ECB's) Sabine Lautenschläger warned on March 1.
The vice-chair of the ECB's supervisory board said she was "not always impressed" by the quality of leveraged contracts. There was "a certain danger that market players see things a tad brighter than they are".
The ECB might issue guidelines that would "define a common set of
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