There hasn’t been this much risky corporate debt in years. The Fed is sounding the alarm about what that could mean for the economy.

  • In 2018, the amount of leveraged loans increased by 20% to above recent peaks in 2007 and 2014.
  • The Federal Reserve this week flagged the sharp rise as a potential risk to the financial system.
  • But institutions appear more resilient than before the financial crisis.

Source: There hasn’t been this much risky corporate debt in years. The Fed is sounding the alarm about what that could mean for the economy.

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