Typically, leveraged loans are underwritten to companies which have levels of indebtedness five times or higher, than their earnings before interest tax and depreciation. Many of these nonfinancial...

Typically, leveraged loans are underwritten to companies which have levels of indebtedness five times or higher, than their earnings before interest tax and depreciation. Many of these nonfinancial companies are rated below investment grade and their level of leverage has been rising.