After underwriting leveraged loans, bank and nonbank lenders, usually sell the loans to retail and institutional entities. Moreover, banks sell leveraged loans to special purpose vehicles, and usually...

After underwriting leveraged loans, bank and nonbank lenders, usually sell the loans to retail and institutional entities. Moreover, banks sell leveraged loans to special purpose vehicles, and usually together with nonbank financial institutions, bankers will structure the loans into an asset backed security called a collateralized loan obligation.