Karen Sibayan

Some high-priced takeover deals in the corporate world have stifled general M&A activity, leaving players in the leveraged-loan market to wonder what will sustain demand for issuances the rest of the year.

Some managers of collateralized loan obligations complain that S&P's ratings of risks behind covenant-lite loans are too harsh and could stifle an growing part of the leveraged-loan market.

Volatility in other credit markets is starting to spill over into leveraged loans, as more than a dozen companies have pulled refinancings and other deals in the primary loan market this month.

Banks and others that make "debtor-in-possession" loans to teetering companies hurt the commercial bankruptcy system by forcing unnecessary liquidations and untimely asset sales, critics say.

The U.S. revival in collateralized loan obligations had spread to Europe -- until an American-style fight over how much "skin in the game" should be kept by CLO managers crept across the pond, too.

Bonds are poised to widen their advantage in yield over leveraged loans again after three years of narrowing. Higher demand for leveraged loans and interest-rate concerns are major reasons.

The value of leveraged loans that changed hands fell last year, but a close look shows other measures of liquidity improved.

Credit card indicators are looking good, with August numbers showing charge-offs decreasing for most asset-backed securities trusts.

Publicly traded REIT Two Harbors Investment Corp. is laying the groundwork for a $200 million jumbo MBS deal, partnering with Barclays Bank PLC.

Redwood Trust on Tuesday filed notice with the Securities and Exchange Commission, signaling its intention to sell a $292 million mortgage-backed security backed by jumbo mortgages.