SEC Declines to Share View on Leveraged Loan Securities Suit

The Securities and Exchange Commission said it is “not in a position to file” a brief giving its view on whether leveraged loans are securities, sidestepping a request to weigh in on a long-running lawsuit that may have major implications for the $1.4 trillion market for risky debt.

A three-judge US Court of Appeals panel had sought the SEC’s view on the question as it weighs a decision in a case that could upend the leveraged buyout machine and a decades-old market riskier companies rely on for financing. The SEC’s filing had been hotly anticipated because the court was expected ...