Leveraged loan risks concentrated in handful of banks – FSB

Banks have about $1.7 trillion of exposures to leveraged loans and collateralised loan obligations (CLOs), although the lion’s share is held by just a few big lenders, mainly in the US.

Lenders in the US had around $931 billion of exposures, those in the eurozone $383 billion, those in Japan $252 billion and those in the UK $138 billion, according to data published by the Financial Stability Board (FSB).

Direct exposures to leveraged loans made up the biggest share of the total, with 80.2%,

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