The Bank of England sends another warning
The Bank of England published its quarterly Financial Stability Report this week. It's an excellent publication for anyone interested in issues pertaining to global banking and financial markets.
Once again, there is a feature article on the risks of the global leveraged loan market. Leveraged lending has become a big topic of debate among financial regulators and investors. It is typically viewed as the potential "ground zero" for the next financial crisis.
The Bank of England provides a timely reminder of the risks. In summary:
- Record issuance. The