Background
BackgroundLeveraged loans are secured loans taken out by sub-investment grade companies who require buy-out or acquisition finance. They represent the most senior part of a company’s capital structure and are, therefore, first ranking in the event of a default.
Leveraged loans are often a complimentary source of capital with high yield bonds but have less risk owing to their priority position. Find out more about Leveraged Loans.
The European market in leveraged loans is large and growing, with increasing involvement by institutional investors and increasing liquidity. Find out more about this asset class and the market key features.
As in the case of high yield bonds, leveraged loans are taken out by sub-investment grade companies. However, they demonstrate some distinctive features. Read more about how they compare here.