Industry bodies and banks have started to limit the release of US leveraged loan data, which is decreasing market transparency, even as regulators increase oversight of the asset class and stress the importance of adequate disclosures to individual investors. Regulators led by the Federal Reserve and the Office of the Comptroller of the Currency have paid closer attention to leveraged lending after saying in 2013 that underwriting practices had deteriorated. The US Securities and Exchange Commission in proposals last month called for more transparency around liquidity risks and risk management from fund managers. The Loan Syndications and Trading Association, the trade body for the US leveraged loan market, has stopped publicly releasing data on the time that loans take to settle in the secondary market. Regulators have flagged long settlement times as a potential threat to market liquidity.
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