Debt market nervousness arrives for leveraged loans


For most of 2022, subprime loans to indebted companies gave investors stability in struggling credit markets. Now, recession fears are driving down loan values ​​and cutting yields in the $1.4 trillion leveraged loan market.

The recent decline in these loans – which fund mergers or corporate deals and are sold to large groups of investors – shows how the market fixation on soaring inflation earlier this year has given way to broader concerns about the economy.


Wj

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