Alarm Bells Ring As OCC Reports Leveraged Loans Hit Record

The good news is that consumer credit has had two consecutive quarters of sequential growth for the first time since the Great Recession, with retail credit reaching $12.96 trillion at the end of last year ($100 billion higher than 2012, and $1 trillion lower than the June 2008 peak). The bad news is that the growth has been driven by student loan debt, risky auto loans, and leveraged loans, says a recent report from the Office of the Comptroller of the Currency (OCC), a part of the US Treasury Department. “Competition is resulting in eased underwriting across a variety of…