The Credit Crunch Is Back: Banks Scramble To Collateralize Loans To Record Levels
by Tyler Durden
ZeroHedge.com
12/27/2015
According to the latest “Survey of Terms of Business Lending”, the banks have finally woken up to the risk their billions in C&I loans issued to fund “financial engineering” are exposed to. The reaction: an unprecedented surge in loan collateralization demands – as the chart below shows, the percent of total loans secured by collateral has soared by nearly 50% in the past quarter to a record 55.9% from 37.9%, the highest ever!
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