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Bloomberg Quint

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Image Credit: Bloomberg Quint

Tariffs Stoke Fears That Hung Debt Will Return

  • Deals in leveraged finance have stalled, raising the possibility that banks might once again get stuck with 'hung' debt.
  • US President Donald Trump's announcement of steep tariffs stoked recession fears and sent stocks plunging.
  • Efforts to refinance debt and launch new issuance of junk debt have fallen short in the US.
  • Banks are facing challenges in selling underwritten loans and attracting investor demand for loan sales.

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