Lev loan restrictions begin to bite

摘要

US regulators' attempts to rein in risky lending are proving successful as leverage levels on the biggest buyout loans have fallen to a two-year low. Total leverage for large buyouts announced in the first quarter of 2015 to date averaged 5.91 times Ebitda, below the six times level that regulators consider too aggressive. The drop in leverage ratios shows that lenders are adhering to leveraged lending guidelines issued by regulators. Ratios averaged 6.55 last year and recently peaked at 6.96 in the third quarter of 2014. The last time leverage levels were below six times was in the first quarter of 2013, after reaching a high of 7.4 in the second quarter of 2007 at the height of the leveraged finance boom.