Companies in the peripheral euro zone countries which caused the near-disaster of the euro zone debt crisis are borrowing big again.
Leveraged loan borrowing from peripheral euro zone nations is at its highest level for the year to date since 2007, according to Dealogic.
While the amount borrowed this year so far, $43.7billion, is still substantially lower than the equivalent $76.2 billion in 2007, it is 64 percent higher than the same time in 2013, and may increase concerns that leverage levels may reach dangerous levels once more.
Companies based in Ireland, acclaimed as a poster boy for bailout-imposed austerity, have been the biggest borrowers in the peripheral euro zone, as optimism returns to the country’s economy following its bailout exit. In contrast, there have been no leveraged loans signed by Greek companies this year, for the first time in nearly two decades.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.