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Markets

The Fear of Being J. Crewed Is Once Again Roiling Leveraged Loans

  • Also, Russia’s incredibly shrinking international bond market
  • Japan’s bond market gets shorter amid BOJ pivot concern
Instant Pot multicookers for sale at a department store.

Instant Pot multicookers for sale at a department store.

Photographer: Nina Westervelt/Bloomberg

It’s the notification every lender fears: designation of an unrestricted subsidiary. 

In plain English, it means that the company that you lent to has just shifted some assets backing your loan — very often among the most valuable assets — into a new unit that’s beyond your reach. And it signals that, in due time, that company will look to strike a deal to borrow more money against those shifted assets from another group of lenders.