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What Are Leveraged Loans? Essay Preview: What Are Leveraged Loans? Report this essay Many academics and policymakers think that asset prices have deviated significantly from “fundamental values” and that this deviation is part of the problem affecting financial institutions. For example, if mortgage and credit assets, which banks hold in plenty, are currently priced below.
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Arbitrage ForcesFundamental ValuesInterest Rate Swap SpreadYear Treasury Rates