The chorus of warnings about leveraged loans as a potential threat to financial stability grew louder after the Bank of England expressed concern again that the market might be heading for trouble. But global demand for yield remains so high, that unless tighter regulation is imposed, the leveraged loan market will keep growing and covenants keep loosening, analysts and investors said. BoE governor Mark Carney ramped up the pressure on leveraged loans last Wednesday, telling a committee of lawmakers that its growth echoed the sub-prime market and the deterioration of underwriting standards seen before the global financial crisis a decade ago.
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