Regulators ease up on high-yield loan restructuring by banks

06/23/2014 | Bloomberg

U.S. regulators have eased rules on high-yield loan restructuring by banks if it leads to a lower-risk profile, a source said. Guidelines on leveraged lending in March 2013 by the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. had outlined risk profiles on leveraged loans deemed worrisome. But banks are also under pressure to improve loan underwriting standards, and leeway on leveraged debt is appropriate if it aids those goals, the source said.

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