US officials say they will investigate the risky $1.6 trillion 'leveraged loan' market

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The Financial Stability Board says 'we have set up a process at the FSB to understand' risks.

The US Financial Stability Board will launch an inquiry into the risky leveraged loan market, the Financial Times reported.

"The deterioration in underwriting standards for leveraged loans is increasingly worrisome," says Lazard Asset Management.The $1.

Former Federal Reserve Chair Janet Yellen, the Bank of England, the Reserve Bank of Australia, and current Fed Chairman Jerome Powell have all warned of the dangers of excess levels of leverage. The outstanding total of the instruments are estimated to be between $1.4 and 1.6 trillion.

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