$1.6 trillion in risky corporate debt ballooned after the Trump administration reversed an Obama-era policy discouraging high leverage
|10/23/2018||Posted by BusinessMediaguide.Com under General World News||
- The total of corporate leveraged loans has hit $1.6 trillion globally, far exceeding the records set prior to the crisis of 2008.
- The loans ballooned after the Trump Administration reversed a stricter Obama-era policy discouraging high leverage.
- Now, leverage is increasing, while underlying covenant quality is decreasing.
- The US Federal Reserve, the Bank of England and the Reserve Bank of Australia have all sounded the alarm over the loans.
It is only October and already the UK economy has set a dubious new record for the year: Leveraged loans to British companies have hit about £40 billion ($52 billion), according to the Bank read more >>>