ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Investors edge away from risky leveraged loans in echo of 2008

As economy cools, securitized debt loses its sheen

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more