Daily News: November 5, 2018

Regulator Warnings on Leveraged Loans Go Unheeded


Reuters reported banks are continuing to issue highly leveraged loans in the wake of loosening rules this year, despite regulator warnings of credit market frothiness.

According to Reuters, Moody’s believes this will result in only a 61% recovery rate for first-lien term loans going forward versus the 77% long-term historical average.