Markets Magazine
Asia’s Fledgling Leveraged Loan Market Is Doing Just Fine
Commercial banks that dominate buyout financing in the region have kept a tight rein on risks. That caution is paying off.
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As the once-piping-hot leveraged loan market falters in the US and Europe, Asia’s fledgling business is booming.
Asia-based banks outside Japan are enjoying one of their best years, posting a 40% year-over-year increase in sponsor-backed leveraged loan sales by September, according to data compiled by Bloomberg. By contrast, the data show, at least 18 deals in the US and Europe were pulled in the first seven months of 2022, contributing to a roughly 50% decrease in leveraged loan sales in those regions.