Matthew Sheahan

Investor demand for leveraged loans is so hot that to increase supply lenders are loosening restrictions on refinancing. It's the beginning of a slippery slope, some experts fear.

More lenders are willing to make second-lien loans because of hot demand and greater yield, even as regulators warn against risks in the leveraged-lending market.

Insurers, private-equity firms and others could swoop in and take underwriting and syndication business (and employees) from banks held back by new capital requirements.

The recent boom in mergers and buyouts in technology, transportation, food service and other sectors is creating more demand for leveraged loans provided and syndicated by banks.

Surprisingly, recovery rates on defaults on leveraged buyouts generally were the same as non-LBOs, Moody's says. Perhaps more surprising: bank LBO loans fared considerably worse.

The cost of financing leveraged buyouts is falling, and in some cases creditors — which include banks — are letting them borrow more of the purchase price.

Lending to non-U.S. borrowers has reached its highest level since 2007, according to Dealogic.

JPMorgan Chase reorganized its capital markets group, separating its debt and equity units and shuffling leadership, while Credit Suisse plans to reduce its headcount worldwide by 3%.

JPMorgan Chase & Co. reorganized its capital markets group, separating its debt and equity units and shuffling leadership of the groups.