OCC, FDIC scrap Obama-era leveraged lending guidance

The Punchline

The OCC and FDIC have rescinded Obama-era leveraged lending guidance, which they deemed overly restrictive, continuing a trend of deregulation under the Trump administration. This move is seen as a contributing factor to the growth of private credit markets.

Why You Should Read This

Understanding the changes in regulatory guidance related to leveraged lending is crucial for assessing risks and opportunities in the private credit market.

Who This Is For

This article is intended for institutional investors, private equity professionals, credit analysts, and financial advisors.

Investor Implications

The scrapping of these guidelines may lead to increased leveraging in private credit markets, potentially enhancing returns for investors while also raising risk levels. Investors should evaluate their exposure and strategies in light of this regulatory shift.