The leveraged lending boom is pushing investor guarantees to the extreme

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August 4, 2021 4:11 PM

According to Moody’s Investors Service, growing investor demand for leveraged loans is dramatically weakening lender protection as borrowers have more opportunities to raise additional debt and pay dividends.

Companies with undesirable ratings are enjoying record low rates to revalue loans on better terms, extend maturities and take security measures designed to protect investors “to the brink,” analysts from the credit rating agency wrote on Tuesday. report who reviewed the terms of more than 200 new loans.

After stopping during the worst pandemic, leveraged lending in the US continues for …

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