This $1 Trillion Loan Market Is Still Under the Radar

The U.S. leveraged loan market is now bigger than $1 trillion, but it’s not quite yet in the big leagues. Look under the hood and you will see a market that’s still clinging to some really old habits.

Firstly, loans are contracts, not securities, so it’s risky to draw too many parallels with high-yield bonds. And loans are mostly private and unregulated -- which enables some issuers to limit which lenders get access to financials, while others can blacklist problematic investors.