Federal Reserve says 2020 stress test will include 'heightened stress' in leveraged loans

WASHINGTON (Reuters) – Large banks with significant trading operations will have their finances tested in 2020 against a scenario that includes “heightened stress” in leveraged loans, the Federal Reserve announced on Thursday.

The Fed also plans to test banks with substantial trading or processing operations against a hypothetical counterparty default as part of its 2020 round of stress tests.

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