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Unwinding corporate debt will be a challenge as the economy cools
Former Fed chief Yellen adds voice to concerns on deterioration in lending standards
Welcome to Due Diligence, the FT’s daily deals briefing
Ex-Fed chair sees systemic risk in leveraged lending and warns against deregulation
The Fed joins the IMF, Bank of England and BIS in sounding alarm.
Regulator compares rise of lending to highly indebted companies to subprime crisis
Confidential client letter hits back at warnings over leveraged loan market
Junky market has deteriorated further with almost two-thirds rated B2 or worse
Concerns that further increases in interest rates could spark trouble for the market
Highest level since mid-May brings net inflows for the year to date near to $14bn
A niche investment vehicle is growing in popularity as the Federal Reserve raises rates
The line between $0 of available dividends and $700m is not as clear as one might think.
US group is now a bellwether for investment banking
Clamour for the products as rates rise risks driving down the quality of assets
CLOs issued in 2014 are accumulating cash.
Increased borrowing by private groups softens economic impact of deleveraging
But bonds are still rallying, seemingly in hope of improved chances for recovery in a default.
Illiquid, opaque asset class meets ultra-liquid structure with constant liquidity. What could go wrong?
As market grows so do concerns about credit quality and lender protections
Just like a rate on a senior loan to a company that... probably won't default, right?
Credit investors are bullish but heed the signs shareholders are sending
A borrowing binge by companies has created a triple B investment grade debt bulge
Growth reflects shift from ‘private bank-loan model to a thriving syndicated market’
Loosening the rules on leveraged loans right now looks peculiar
Limited investor security in debt agreements seen ending badly as credit cycle peaks