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Europe Leveraged Loans Post Longest Run of Losses Since Crisis

  • Prices tumble for 13 days as investors shun risky assets
  • CLO spreads reach widest since the market re-opened in 2013

Europe’s leveraged-loan market is in freefall.

Prices for the riskiest loans to companies dropped for the 13th straight day on Wednesday, the longest run of declines since the global financial crisis, according to an S&P index tracking 95 billion euros ($106 billion) of debt. The yield premium that investors demand to hold bonds backed by such debt is at a record for collateralized loan obligations, or CLOs, sold since the market re-opened in 2013, according to Barclays Plc.