Leveraged Loan Funds Heading For The Exit (Bloom Is Off The Rose For Corporate Subprime)

Yes, the bloom is off the rose for another “subprime” debt product, this time leveraged loans and leveraged loan funds.

Leveraged loan is debt from companies with below investment grade credit ratings. Leveraged loans are typically secured with a lien on the company’s assets and are generally senior to the company’s other debt.

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Rising interest rates and an excessive amount of corporate debt outstanding aren’t helping.

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