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As ties grow, banks have both more reason and more capacity to monitor credit quality.
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By selling loans to investors and removing them from their books, banks have a lesser incentive to carefully evaluate and monitor borrowers' credit quality to ensure that they can repay their loans.
Given the significant interconnections between banks and all other types of financial institutions, bank and financial regulators as well as investors would do well to keep monitoring the credit quality of leveraged loans and CLOs.
Second, credit quality is good.
Credit quality, however, is deteriorating fast.
Credit quality continues to fall, Bank of America said.
With credit quality deteriorating, default rates are bound to rise.
At home, credit quality has mostly held up.
That tightening reflects a deterioration in credit quality.
Going IT alone ReprintsMore debt means poorer credit quality.
Thanks to all these debuts, credit quality has fallen.
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