It’s White-Knuckle Time for Buyers of Riskier Corporate Loans

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It’s White-Knuckle Time for Buyers of Riskier Corporate Loans
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The lower reaches of the market for corporate loans have suffered sharp declines, a sign of aversion to earnings shortfalls or other strains at indebted companies

The market for low-rated corporate loans has suffered sharp declines in recent months, a sign of growing aversion to earnings shortfalls or other strains at indebted companies.

In the U.S. at the start of December, some 2.5% of leveraged loans were trading at less than 70% of face value, the most since September 2016, according to S&P Global Market Intelligence’s LCD, the loan market research service.

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