Leverage increasing among large shared loans in US, regulators warn
Fed, FDIC and OCC say lenders are relying on borrowers’ “savings and synergies”
The amount of leveraged lending in the US has increased considerably over the last 18 months, three US regulatory agencies find in a new report.
The Shared National Credit report, released on January 25 was conducted by the Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. They find leveraged loans accounted for 73% of loans in the lowest supervisory rating category. This is up from about 64% in the previous report released in August 2017
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