An analyst at American Family Insurance concluded in a recent report that leveraged loans do not pose a systemic risk at this time. The report, authored by Steven Kelly and shared with the LSTA, is a response to press and regulatory inquiries into this question such as the Bank of International Settlements’ report released on Sunday.
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
Become a Member
Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.