Banks keep underwriting highly leveraged loans for low-rated companies that are drawing U.S. regulators' attention, Thomson Reuters LPC data show, despite a looming review by the federal agencies that are trying to clamp down on these transactions. There has been no let-up in deals that could run afoul of year-old regulatory hurdles, which require banks to hold more reserves and possibly pay fines, in the weeks leading up to reviews of their loan portfolios by the Office of the Comptroller of the Currency, the Federal Reserve and Federal Deposit Insurance Corp.Bankers expect the annual Shared National Credit (SNC) quality reviews to help clarify how regulators will treat various leveraged loans.Warning letters were sent to some banks last year urging compliance with Leveraged Lending Guidance published in March 2013, which is designed to avoid the type of systemic risk spurred by the originate-to-distribute mortgage loan market.Bankers say that the guidelines are driving more judicious underwriting decisions, but 13 of the largest corporate leveraged takeover deals in the first quarter carried debt-to-Ebitda ratios of 6.24 times, on average, the LPC data show.
Thomson Reuters Corporation (Thomson Reuters), is a provider of information for the world?s businesses and professionals. Shares of TRI fell by 2.19% or $-0.76/share to $33.91. In the past year, the shares have traded as low as $31.38 and as high as $38.73. On average, 851408 shares of TRI exchange hands on a given day and today's volume is recorded at 912931.
Thomson Reuters Corporation (Thomson Reuters), is a provider of information for the world?s businesses and professionals. Shares of TRI fell by 1.59% or $-0.6/share to $37.23. In the past year, the shares have traded as low as $32.83 and as high as $42.10. On average, 1008080 shares of TRI.TO exchange hands on a given day and today's volume is recorded at 661925.
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