Published today in the Financial Times, in an interview ex-Fed chief Janet Yellen notes: ‘’I am worried about the systemic risks associated with these [leveraged] loans. There has been a huge deterioration in standards; covenants have been loosened in leveraged lending. There are a lot of weaknesses in the system, and instead of looking to remedy those weaknesses I feel things have turned in a very deregulatory direction’’. Keep an eye on Bank OZK, formerly known as Bank of the Ozarks based in Little Rock, Arkansas, whose share price has halved since the beginning of this month. Some are suggesting it might be this decade’s Countrywide.
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