• The Bank of England is sounding the alarm on a quiet corner of the debt market now worth $1.4 trillion

    1 month ago - By Business Insider

    The Bank of England is sounding the alarm over an underexposed area of the corporate debt market.
    It bears striking similarities to what happened in the US subprime mortgage market in the run up to the financial crisis, the central bank said on Thursday.
    The amount of leveraged loans to nonfinancial companies has risen to about $1.4 trillion globally.
    The Bank of England on Wednesday raised the alarm about the growth of so-called leveraged loans in the UK, saying that the sector's rapid growth should be a cause for concern for policymakers and market participants going forward.
    In the...
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