are held properly outside the banking system, on the balance sheets of non - banks like hedge funds and open - ended funds. chart 17 shows our map of who holds the loans and in what form. these are estimated five - year loss rates based on observed default rates during the global financial crisis on the s & p leveraged loan indices for the us and europe and moody ’ s data for all corporates. we assume a recovery rate in line with the average on first lien loans. all speeches are available online at www. bankofengland. co. uk / news / speeches chart 17 map of who holds leveraged loans and in what form indicative estimated global stock of leveraged indicative estimated holdings of leveraged loans by loans by product type global investors sources : barclayhedge, bloomberg finance l. p., fca alternative investment fund managers directive ( aifmd ), firm public disclosures, lcd, an offering of s & p global market intelligence, morningstar, national association of insurance commissioners, securities industry and financial markets association, solvency ii submissions and bank calculations. notes : ( a ) estimates of the total stock are based on bloomberg ’ s definition of leveraged loans. given the lack of a consistent definition of leveraged lending, there is uncertainty over the total stock of outstanding leveraged loans. ( b ) for loans that are distributed to non - bank investors and clos, allocation across investors is based on ‘ bottom - up ’ estimates of holdings from a range of sources. hence, there is a significant proportion of institutional loans that are unallocated. ( c ) for hedge fund holdings of leveraged loans and clos we scale up holdings reported to uk authorities by non - eea managed aifs to reflect the size of the global hedge fund universe. this means these estimates are particularly uncertain. ( d ) revolving credit facilities and amortising term loans are allocated to banks given that they are typically the holders of these facilities. this picture is consistent with wider developments in corporate credit. non - banks account now for 56 % of the stock of uk corporate debt. market - based debt has accounted for all of the growth in the stock of debt to uk businesses since end - 2007. overall, that shift is positive for the resilience and stability of the system. other things equal, £1 of loss incurred in the non - bank financial system is almost certainly less disruptive to the wider economy than £1 of loss incurred in the banking system. but without

1999 2000 2001 2002 2003 2004 2005 2006 chart 7 : pension fund and insurance company money holdings as a share of total financial assets percentages of icpf assets 8. 0 st erling deposit s 7. 0 m4 6. 0 5. 0 4. 0 3. 0 2. 0 1. 0 0. 0 chart 8 : ofc ’ s m4 growth by sub - sector percentage points ofas 40. 0 35. 0 30. 0 25. 0 20. 0 15. 0 10. 0 5. 0 0. 0 - 5. 0 - 10. 0 - 15. 0 ofis securit ies dealers and ot hers inst it ut ional invest ors ofcs m4 growt h chart 9 : world broad money ( m2 ) growth ( individual country m2 ( or nearest equivalent ) weighted by market exchange rates per cent - 2 chart 10 : lcfi's debt held for trading versus representative indices index 31 / 12 / 2000 = 100 us lcfis'debt holdings european lcfis'debt holdings global broad market corporat e index mort gage - backed securit ies index asset - backed securit ies index source : sec filings, published accounts and merrill lynch. bnp paribas excluded due to lack of h1 interim data.