Leveraged loans are too risky for banks to keep on their books. Banks sell them, and they can be traded; or banks package them into Collateralized Loan Obligations (CLOs), and they’re traded as such. Being loans, they’re not considered securities, but they trade like securities. They’re the booming sisters of the languishing junk bonds
https://wolfstreet.com/2018/06/24/risks-pile-up-quietly-in-the-us-corporate-bond-market/
