Please read the article : https://www.wsj.com/articles/leveraged-loans-are-b… (Leveraged Loans Are Back and on Pace to Top Pre-Financial Crisis Records) . Then answer these questions:
1. Why would investors accept covenant-like loans? Why would companies want covenant-light loans?
2. Why hasn’t the financial crisis and the example of Toy ‘R’ Us had more of an effect on investor willingness to lend to highly levered firm?
3. To what extents are central banks responsible for the growth of leveraged loans?
4. How is the term of a loan related to its risk?
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