Nationwide loan issuance drops to $547 billion

U.S. loan issuance fell to $547 billion this year, marking a 28 percent drop from the $764 billion issued in 2008, according to a data report released from Reuters Loan Pricing. The drop in loan volume can be attributed in part to distressed companies’ refinancing bank loan debt through better borrowing costs. This move allowed many distressed loan holders to extend and stay solvent, according to the report. “Refinancing of both leveraged loans with high yield bonds and straight bond-to-bond takeouts has provided many leveraged issuers with crucial debt extensions,” the report says.