TOKYO -- Investors are increasingly pulling cash out of leveraged loans to companies with low credit ratings, a trend that has implications for Asian financial institutions exposed to such debt amid similarities to conditions leading into the 2008 financial crisis.
Since July, leveraged loan sales for five companies -- including U.S. marketing company Golden Hippo and gym operator Life Time Fitness -- have been aborted, with caution growing over the risky securities as the reward that once accompanied that risk fades.
