
Leveraged Loan, CLO Outlook 2025, US vs. Europe: Credit Crunch
FICC Focus
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Diverging Default Rates in Global Loan Markets
This chapter examines the striking differences in default rates between U.S. leveraged loans and their European counterparts, revealing a declining trend in Europe. It highlights the implications of loan documentation quality, recovery dynamics, and the evolving nature of credit ratings as the markets move towards 2025. The discussion underscores the necessity for better communication regarding the leveraged loan asset class to enhance its public perception and investment appeal.
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