Anyone who holds a leveraged loan can be adversely impacted if the leveraged loan borrower defaults or deteriorates in credit quality. According to Claudio Borio, Head of the Monetary and Economic...

Anyone who holds a leveraged loan can be adversely impacted if the leveraged loan borrower defaults or deteriorates in credit quality. According to Claudio Borio, Head of the Monetary and Economic Department at the BIS “the credit standing of non-financial corporations in general, and the surge in leveraged loans in particular, represent a clear vulnerability”.