Leveraged Loan Defaults Hit $23 Billion – The Highest In Two Years
According to Forbes, leveraged loan defaults are now at $23B, which is the highest they’ve reached in two years. Not only that but between October and November of this year, 11 issuers defaulted to the amount of $7.8B. None of this is good news for the market or investors.
Comprised of lending syndicates to speculative companies that have junk grade credit, leveraged loans are high-risk credits that the US Securities and Exchange Commission does not regulate. Now, Forbes is reporting that leveraged loans are defaulting from every area of the economy, with the energy and retail sectors being hit especially hard.