Fuelling the rise of leveraged loans

Quarterly issuance of leveraged loans in the US

After a hiatus in leveraged loan issuance during the credit crisis, the leveraged loan market is back again, to a large degree this has been driven by CLO issuance. Credit funds also represent another source of investment capital in the US with leveraged loans forming part of retail investors’ portfolios.

Ranbir Singh Lakhpuri, Portfolio Manager, Insight Investment

Pro rata loans consist of revolving credits and amortizing term loans. They are traditionally syndicated to finance companies and banks. Institutional debt consists of term loans structured specifically for institutional investors, including CLOs, although some banks buy institutional term loans.

 

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