Federal Reserve officials have warned banks that they may be required to hold more capital against a rising level of high-risk, high-yield loans on their balance sheets, Bloomberg reported late Tuesday, citing a person close to the conversations. This year along, banks have arranged around the sale of around $411 billion of leveraged loans to investors so far this year, versus a record $696 billion for 2013. Regulators boosted scrutiny of banks after 2013 guidance issued by the Fed failed to curb volume or improve credit standards.
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.