Leveraged loan overhang starting to clear

Financial News Online notes a report by CreditSights that the volume of hung leveraged loans that banks are carrying has dropped nearly 60 percent since the start of the year. About $91 million remains, about evenly divided between funded and unfunded commitments. This is somewhat surprising and qualifies as good news for the industry. The fact is that there are lots of buyers, including a lot of funds formed by big-name private equity firms chasing deals right now. In some cases, loans may be owned by fund affiliates with the owner of the issuing company. Interesting. Discounts aren't what they used to be. Some banks may hold off seeking buyers in hopes of even more improvement in the market.  

For more:
- here's the Financial News Online article

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