SEC Declines to Share View on Leveraged Loan Securities Suit
- Panel of judges had sought regulator’s opinion in case
- Changing treatment of loans could spark regulatory changes
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The Securities and Exchange Commission said it is “not in a position to file” a brief giving its view on whether leveraged loans are securities, sidestepping a request to weigh in on a long-running lawsuit that may have major implications for the $1.4 trillion market for risky debt.
A three-judge US Court of Appeals panel had sought the SEC’s view on the question as it weighs a decision in a case that could upend the leveraged buyout machine and a decades-old market riskier companies rely on for financing. The SEC’s filing had been hotly anticipated because the court was expected to lean heavily on its opinion, legal experts earlier told Bloomberg.