Jump to content
House Price Crash Forum
Sign in to follow this  

Leveraged Loans Pass ’12 Level With Record Ahead

Recommended Posts


The riskiest U.S. companies are stepping up their borrowing in the market for leveraged loans, with the amount of financings completed this year already exceeding what they raised in all of 2012.

Borrowers from HJ Heinz Co. to Valeant Pharmaceuticals International Inc. (VRX) have tapped non-bank lenders for $298.4 billion in 2013, more than the $295.3 billion obtained last year, according to Standard & Poor’s Capital IQ Leveraged Commentary and Data. At the current pace, the record of $386.6 billion in 2007 will be eclipsed before year-end.

Rather than leveraging up, more than half of the loans made this year have been used to reduce interest costs or extend maturities as companies take advantage of investor demand to strengthen their balance sheets. Investors added a record $2.1 billion last week into funds that buy loans, bringing the total for the year to more than $40 billion, according to Bank of America Corp. (BAC)

“We have seen significant demand” for high-yield, high-risk loans, said Scott Baskind, the co-chief investment officer for the senior secured bank loan team in New York at Invesco Ltd., which oversees $22 billion of the debt.

So loans not being made for "investment" but to reduce borrowing costs.

Can't see anything going wrong here and the good news is we might exceed the loans made in 2007. Success all round.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 404 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.