The Ticking Time Bomb This Time: $2.2 Trillion of Leveraged Loans Are 2X The Size of Subprime Mortgages

When they accounted “for smaller, less liquid loans, as well as lending facilities that are held by banks, the size of the market is more like US$2.2 trillion. Around US$1.8 trillion of this is typically held by non-bank institutions.” It is important to note that larger more liquid leverage loan amount is comparable to the amount of U.S. subprime mortgages before the 2008 financial crisis.

Global leveraged loan market.

 

 

 

 

 

 

https://www.forbes.com/sites/mayrarodriguezvalladares/2019/09/22/leveraged-loans-and-collateralized-loan-obligations-are-riskier-than-many-want-to-admit/?utm_source=dlvr.it&utm_medium=twitter#681cdb9b6602