Corporate America has taken on substantially more debt in the aftermath of the Great Recession. Today, the underlying structure of that leverage looks different. Fewer bonds are being issued. Bank loans to indebted companies now match junk bonds in total issue. This article will review the market for leveraged loans - a marketplace that has grown tenfold in the new millennium and has passed the $1 trillion threshold.
A leveraged loan is a commercial loan provided to a borrower that has a non-investment grade rating. The Bank of England concludes that the leveraged loan marketplace