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Prepayments of ECB bank loans threaten to increase borrowing costs
LONDON (Reuters) – Already facing a likely slowdown in growth, the eurozone risks a sudden tightening in financial conditions next month if banks across the bloc use the opportunity to repay billions of euros in good loans contracts contracted with the European Central Bank. FILE PHOTO: The logo of the European Central Bank (ECB) is …
Balancing law: choosing actively managed bank loan funds
In a recent article, my colleague Phillip Yoo highlighted the developments and risks in the bank lending market, including the rise in leverage ratios, the proliferation of so-called “covenant-light†loans and the liquidity risk inherent in the D class. ‘assets. These challenges all have implications for how we rate actively managed funds in the Morningstar …