The global leveraged lending market is larger than the US subprime mortgage market before the financial crisis, and is growing as quickly, the Bank of England warns in its October Financial Policy Committee meeting minutes.
“The global and UK markets for leveraged loans have grown rapidly in recent years,” the BoE says in its recent stress test report. “This reflects strong creditor risk appetite and a marked loosening of underwriting standards.”
The market reached an estimated total stock of
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