Leveraged Loan Issuance Expected to Drop in 2019

The video discusses the current state and future expectations of the leveraged loan market. Analysts predict a decrease in leveraged loan issuance next year, with Citigroup forecasting a drop from $400 billion to $350 billion. The market has been under pressure, with prices falling to their lowest since 2016. This situation raises concerns about companies' ability to refinance, especially with rising Libor rates. Some companies may turn to the bond market to lock in lower rates. Analysts warn that leveraged loans could face significant challenges in the coming year.

What is the expected trend for leveraged loan issuance next year according to credit analysts?

• Issuance will be unpredictable

• No change in issuance

• Decrease in issuance

• Increase in issuance

What has been the trend in leveraged loan prices recently?

• Prices have remained stable

• Prices have fallen to the lowest since October 2016

• Prices have increased significantly

• Prices have fluctuated without a clear trend

What might companies consider due to the difficulties in refinancing leveraged loans?

• Increasing their interest rates

• Reducing their debt

• Refinancing in the bond market

• Issuing more leveraged loans

Why might companies find it challenging to refinance their loans?

• Due to decreasing Libor rates

• Because of rising Libor rates

• Because of stable Libor rates

• Due to fluctuating Libor rates

What is a potential consequence of the current market conditions for leveraged loans?

• Stable refinancing options

• Trouble for the asset class

• Decreased interest in the bond market

• Increased issuance of leveraged loans