Leveraged lending and collateralized loan obligation (CLO) markets warrant attention from regulators, rating agencies, and market participants. Also, not addressed are interconnections between banks and the non-banks which hold CLOs and leveraged loans in various forms. To be clear, it is not the job of bank examiners to look at the CLO portfolios of non-banks. Andrew Harrer/BloombergThe regulators also answered questions related to the 2013 leveraged lending guidance published by the three agencies. The sole question to him was “The leveraged lending market involves a number of different types of entities that are subject to oversight from a number of different federal regulators.

Source: Forbes May 07, 2019 20:03 UTC