High demand depresses returns

Frothy loan multiples mean investors are taking on greater risk for less reward

The frothy state of the leveraged finance markets has altered the risk/reward ratio for investors in European debt, according to John Sinik, a managing director of leveraged finance at Deutsche Bank.

"Investors are taking a lower rate of return for a higher rate of risk," Sinik said at a private equity conference hosted by Financial News in London.

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Aviva Takeover of Direct Line Gets Green Light From U.K. Antitrust WatchdogExternal link

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