The U.S. government is hammering home the message to Wall Street banks that it's okay to dial up the risk when lending to companies.
Two regulators, including Federal Reserve Chairman Jerome Powell, separately said this week they are lightening up on guidelines that limited lending to companies with big debt loads. The comments follow an appeals court decision that looks set to make it cheaper for money managers to bundle corporate loans into bonds — a ruling some say could increase the flow of credit for private equity buyouts and other highly indebted corporations.
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