Deals
Leveraged Loan Investors Demand Steepest Discount Since 2011
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Wall Street banks are being forced to sell leveraged loans at the steepest discounts in four years as sentiment sours for risky assets amid a commodities slump.
The average discount needed to sell U.S. first-lien loans in October widened to 97.13 cents on the dollar from 99.10 cents in September, according to data compiled by Bloomberg. The difference translates into an extra $18 million in increased costs for every $1 billion borrowed.