Mind The $1.5 Trillion Leveraged Loan Market—It’s Downright Bubblicious

“It’s definitely bubblicious,” Davis said. She also said those complex purchases of loans, which are used partly to finance private-equity transactions, may be fostering much of the current volatility exhibited by global equity markets. The leveraged-loan borrowing in the U.S. has quietly ballooned over the past two years, surging way beyond levels since during the 2007 financial crisis.