Significant vulnerabilities in the global leveraged loan and collateralized loan obligations (CLOs) markets have grown since the 2008 financial crisis, especially since there are numerous supervisory and data gaps in these markets. According to analysis in the just released report “Vulnerabilities associated with leveraged loans and collateralised loan obligations,” the Financial Stability Board found that “the degree of borrowers’ leverage has increased.” Moreover, “although loans tend to have lower credit ratings, there is some evidence that certain changes to loan documentation that weaken creditor protection are not fully priced in by market participants and investors.”