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Banks squeezed by sentiment shift on leveraged loans

Investors being offered more favourable terms as banks fear being left holding the baby

Banks squeezed by sentiment shift on leveraged loans

Banks are finding it increasingly hard to syndicate the leveraged loans they are holding, forcing them to offer more favourable terms and underwrite less new business.

The change in sentiment, which is already taking place in the US, appears to be affecting banks' appetite to write fresh loans, particularly in areas such as buyouts.

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