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Leveraged Loans Dodge Existential Threat In New York Court

  • Judge dismissed claim that leveraged loans are securities
  • Investors sued banks over debt sale claiming securities fraud
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Source: Getty Images

The $1.2 trillion leveraged loan market’s biggest players can breathe a collective sigh of relief -- at least for now.

A New York judge last week dismissed a claim that a leveraged loan JPMorgan Chase & Co. and other Wall Street banks sold in 2014 could be considered a security and, as such, be subject to the same disclosure requirements as stock and bond offerings.