Bank Regulators Eyeing Leveraged Lending

Law360, New York (February 24, 2014, 11:41 AM EST) -- Historically low interest rates in the United States have helped to fuel tremendous growth in leveraged loans. Leveraged-loan volume in 2013 surpassed record levels set just prior to the global financial crisis, as banks and other institutional investors sought opportunities with potentially higher returns from more highly leveraged borrowers.

In response to the substantial growth and significant participation of unregulated nonbank entities, U.S. bank regulators appear to be paying closer attention to the leveraged lending activities of their regulated banks. We expect this attention to continue...
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