ion market, and a variety of financial experts have raised concerns about the booming industry.pension funds and mutual funds, among others.
The market has received criticism for the weak protections afforded to investors, with some fears that it could lead to major issues in the event of an economic downturn or recession.These loans are, in simple terms, to riskier companies which have amassed a large amount of debt relative to their earnings. And the market for these loans has boomed.
Amid an extended period of low interest rates, 2017 saw a record amount of leveraged loan issuance, with 2018 following close behind, with over $700 billion in total issuance. The outstanding total of outstanding loans is estimated to be between $1.4 and 1.6 trillion.
And as the market's grown, the warnings have gotten louder.