The Leveraged Loan Market
This book offers an in-depth analysis of leveraged loans, focusing on their implications for both credit risk and systemic risk within the financial system. It develops a market-based measure of borrower credit risk for a market in which default itself has become difficult to define, and maps the network through which leveraged credit is originated, uncovering how these loans amplify interconnections between institutions. It also examines the role of leveraged debt in financing external growth through mergers and acquisitions, and the opportunities and risks involved in those strategies. Additionally, the book examines the rise of new loan categories, such as green and sustainability-linked loans, and their evolving impact on market practices. By evaluating these elements, the book provides critical insights into the leveraged loan market's role in shaping financial stability and its broader implications for regulatory frameworks.
Gennaro de Novellis is Assistant Professor of Practice at SDA Bocconi School of Management. His research and teaching mainly cover asset and risk management, syndicated and leveraged lending, sustainable finance, and credit and systemic risk. He is also Adjunct Professor of Private Banking and Asset Management at the University of Perugia, and has previously taught Corporate Finance at the University of Milan. Before embarking on his doctoral studies, he worked as a risk manager in Luxembourg, where he was responsible for various tasks including the development of risk metrics for leveraged loan funds.