Winston & Strawn

The Punchline

On December 5, 2025, the OCC and FDIC rescinded the Interagency Leveraged Lending Guidance, signaling a significant regulatory shift in the banking sector's approach to leveraged loans. This move is expected to facilitate a more favorable lending environment for borrowers and may lead to increased activity in leveraged lending markets.

Why You Should Read This

Understanding the implications of this regulatory change is crucial for stakeholders involved in leveraged loans and debt markets, as it may impact future lending strategies and risk management.

Who This Is For

This article is primarily targeted at financial regulators, institutional investors, and credit analysts who monitor banking regulations and their implications for lending practices.

Investor Implications

The rescission of the guidance may allow lenders more flexibility in extending credit to borrowers, potentially leading to more competitive pricing and increased loan volume. Investors should consider how this shift may affect risk assessments and investment strategies within the leveraged loan space.