Loans which are provided by a relatively large (15-20+) group of lenders (a combination of banks and institutional investors). Lenders are able to trade these loans in an over-the-counter secondary market, typically brokered by trading desks at investment banks.
The largest buyer base for Leveraged Loans are CLO vehicles (Collateralized Loan Obligations).
Generally, Leveraged Loans will have one or multiple Credit Ratings, which is only one of the requirements for investment for CLOs.
Also known as Broadly Syndicated Loans (“BSL”)