leveraged loan

Included in this total were $221 million in highly leveraged loans at the end of June.

World Bank Group, a family of five international organizations that makes leveraged loans, generally to poor countries.

Leveraged loans are normally negotiated by banks, but they put up only a little of the cash.

Banks that make leveraged loans are also facing pressure from the government to reduce their exposure to such lending.

As banks reduce their role in the leveraged loan market, private investors have stepped in.

As rates declined, borrowers took advantage, with costs lowered for some 38 percent of all leveraged loans.

Finance companies have consistently represented less than 10% of the leveraged loan market, and tend to play in smaller deals-$25-200 million.

Most of that money came from what are now called leveraged loans, and only a little from the more conventional junk bond market.

The good news for borrowers is that banks' role in the leveraged loan market has been shrinking for some time.

As leveraged loan activity came to an abrupt stop, private equity firms were unable to secure financing for their transactions.

And with more than a third of all leveraged loans refinanced over the last year, there is a chance that the loan could quickly be replaced.

Last year, he said, his agency criticized the quality of 9 percent of the highly leveraged loans of 11 large multinational banks.

With the increase in such defaults, the number of leveraged loans trading at distressed levels now accounts for 16 percent of the market.

Investment funds now account for nearly half the buyers of leveraged loans, according to Portfolio Management Data.

CLOs are special-purpose vehicles set up to hold and manage pools of leveraged loans.

Another sign that demand for loans outstrips supply is the lofty prices at which leveraged loans trade.

In addition, Trimaran's debt business has managed approximately $1.5 billion of leveraged loans across four collateralized loan obligation vehicles.

And with high-yield bonds in a slump, these would-be borrowers have increasingly depended on so-called leveraged loans.

In that year it achieved the highest revenues of any investment bank worldwide in both leveraged loans and asset-backed securities.

It seeks to mirror the market-weighted performance of the largest institutional leveraged loans in an effort to reflect the most liquid side of the market.

One restraint on the growth of the leveraged loan trade is that many institutions are barred from investing in instruments that are not investment grade.

Secondary trading is a routine activity and mark-to-market pricing as well as leveraged loan indexes have become portfolio management standards.

Even before Sept. 11, the market for leveraged loans, as financings by banks to less-established companies are known, had been weak for more than a year.

Mr. Ross said that his business typically grew a couple of years after an outpouring of high-yield bonds and leveraged loans, which has occurred recently.

Revised Guidelines The highly leveraged loans are often the result of leveraged buyouts or other corporate financings.