An Accident Waiting to Happen: The $1 Trillion Leveraged Loan Market | Fed's Fisher Admits "Fed Has Levitated Markets", Warns Of "Signs Of Excess"

A new article in Bloomberg gives a well-researched overview of a mess-in-the-making that regulators are choosing to ignore: the leveraged loan market. For newbies, “leveraged loans” means “risky loans to big companies”. For the most part, they fund private equity buyouts and restructurings. The juicy fees on these financings, 1% to 5% of the amount raised, versus an average of 1.3% for junk bonds, is a big reason why none of the incumbents is particularly eager to change a market that is working just fine for them in its current, creaky form.  NakedCapitalism

*FISHER SAYS FED HAS 'LEVITATED' MARKETS, SEES SIGNS OF EXCESS IN FINANCIAL MARKETS

ZeroHedge > Tyler Durden
FOMC voting-member Richard Fisher is among the sanest voices in the Eccles Building asylum and he is once again sounding alarms that all is not well in US financial markets*