Leveraged Loan Insight & Analysis – 11/3/2014

Fourty-nine percent of all domestic banks surveyed said spreads of loan rates over their bank’s cost of funds have narrowed for larger firms in the past three months compared to 57 percent a year ago. One fifth of U.S. banks reported loosening covenants, down from 22 percent last October. Also of note is the decline in the share of banks reporting an easing of collateralization requirements to just four percent from 10% at this time last year. In addition, 27 percent of banks said fewer interest rate floors are being used on loans to larger firms, down from 34 percent this time last year.Underliers