Comment on Why Leveraged Loans, CLOs Feed Worries in Virus Slump: QuickTake

Why Leveraged Loans, CLOs Feed Worries in Virus Slump: QuickTake

Higher-risk corners of the financial market are under stress from the economic collapse caused by the Covid-19 pandemic. One area that’s a focus of intense nail-biting is so-called leveraged loans -- or borrowing by companies with shakier credit ratings. As prices of these loans plunged in March, concerns grew about a wave of credit-rating downgrades or defaults.

 

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