Leveraged Loans

Subgroup of syndi­ca­ted loans, i.e. loans distri­bu­ted among seve­ral credi­tors, which are usually senior secu­red (i.e. senior to other liabi­li­ties clas­si­fied as junior or subor­di­na­ted) and which, accor­ding to the various hete­ro­ge­neous defi­ni­ti­ons, either (1) are not invest­ment grade (i.e. below BBB+) or (2) have a debt-to-EBITDA ratio of 3.0 or more or (3) are priced more than 150 basis points above the London Inter­bank Offe­red Rate (LIBOR).