Do leveraged loans create systemic risk? Read this FAQ to find out the answer
This week we cover House Lev Loan Hearing; Asia Conferences Report
Are leveraged loans systemically risky? A subcommittee of the House Financial Services Committee held a hearing this week to examine this very issue, one that the LSTA has scrutinized closely and that regulators, reporters and commenters have been mulling over for many months. (A webcast of the hearing is available here and the Committee memorandum is available here). Below, we review the hearing and address the major themes that emerged.
This week we cover Loans & Systemic Risk Redux; Seeing SOFR; Bankruptcy Roundup
This week we cover Trading Records; Loans as Securities?; LIBOR Progress; Systemic Risk & AAL Good Things
This week we cover 1Q19 US Loan Market Review & London Call Outs
This week we cover Systemic Risk vs. Credit Risk; Record Trading Volumes; SOFR Volatility; and Brexit
Earlier this week, the FT hosted a “point-counterpoint” debate on whether “leveraged loans pose a threat to the US economy”. At the LSTA, we found this conversation stimulating. However, we felt a major point – around what systemic risk actually means – might have been missed. As a result, we offered up a comment to the FT, which we publish in full below.
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