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Worries rise that leveraged loan market is overheating

S&P is warning that the U.S. leveraged loan market is overheating, with analyst Paul Draffin telling the FT:

Quote"History shows us that the worst debt transactions are done at the best of times."

But don't expect this upward trend to change anytime soon. Not only because of rising Fed rates lifting all terms, but also because U.S. regulators recently announced that banks no longer should pay attention to federal leveraged lending guidelines.

It's also worth reiterating that relatively few pre-crisis LBOs actually failed, despite some high profile examples, and that the crisis itself was not sparked by risk miscalculation (or misbehavior) in the LBO market.

Axios 1 hour ago
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Michael Sykes 2 hours ago
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Photos: Trump welcomes Emmanuel Macron to White House

Trump walking with Emmanuel Macron, his wife Brigette and Melania Trump.
Trump welcoming Emmanuel Macron and his wife Brigette to the White House. Photo: Chip Somodevilla/Getty Images

President Trump welcomed French President Emmanuel Macron and his wife Brigette to the White House on Tuesday and delivered a speech alongside him on the front lawn.

The details: Macron and Trump are scheduled to meet later in the day for private talks regarding foreign policy strategies. This is the first state visit for Macron during Trump's presidency.