Moody’s warns of ‘systemic risk’

From Greg M

Lions and friends…

Moody's Corporation is a New York-based company that owns Moody's Investors Service, which rates the creditworthiness of companies and governments.

Moody’s has issued a warning of “Systemic Risk.”

“We believe large banks in the publicly syndicated loan market — which have lost significant leveraged loan share to private credit rivals in recent years — will be competing aggressively as new leveraged buyouts emerge,” said Moody’s analyst Christina Padgett, who leads the agency’s research of risky corporate lending. “This will cause pricing, terms and credit quality to erode, fueling systemic risk.”