Unreadable Fine Print in Leveraged Loans Sparks Market Backlash

Some of the largest investors in the $1.2 trillion market for risky corporate loans say they’re being given too little time to comb through the hundreds of pages of documents that govern the deals, leaving them exposed to potentially dangerous loopholes.

Now many are urging the industry’s main trade group to do something about it.

GSO Capital Partners, the credit arm of Blackstone Group Inc., is working with roughly a dozen other buy-side firms as well as underwriters including JPMorgan Chase & Co. and Bank of America Corp. to propose new industry standards, according to people with knowledge of ...