Heard on the Street

Loan Market Isn't on Borrowed Time

December 7, 2011

Remember the halcyon days of June 2007? Stocks were soaring and the phrase "Greek ruins" inspired travel plans rather than bank runs. It was also the month that Canadian telecom giant BCE accepted an offer for what would have been the world's largest leveraged buyout, and the trailing default rate on leveraged loans fell to an all-time low of 0.15%.

A year later, stocks were past their peak and Greece was heading for...

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