O'Reilly logo

The Investment Assets Handbook: A definitive practical guide to asset classes by Yoram Lustig

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 12: Leveraged loans

Introduction

Leveraged loans (or simply loans) fall under the broad category of fixed income, alongside structured finance, government bonds, investment grade corporate bonds and high-yield bonds. The US leveraged loan market is almost as large as the high-yield bond market, with over $800 billion of outstanding loans as of May 2010. [172] In Europe companies borrow predominantly via bank loans rather than by issuing bonds.

Unlike bonds, loans are not tradable securities. They settle through execution of bilateral legal contracts between parties (the lending bank and borrowing company). They have historically been less accessible to small investors compared to other fixed income securities such as corporate ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required