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Loans Face Test as Secondary Pricing Sounds a Cautionary Note

A DAX index curve logo sits on a glass panel inside the Frankfurt Stock Exchange in Frankfurt, Germany, on Monday, April 24, 2017. Franceâs bonds jumped, with the 10-year yield dropping to its lowest level in three months, after centrist Emmanuel Macron and nationalist Marine Le Pen won the first round of the nationâs presidential election.
Photographer: Krisztian Bocsi/Bloomberg

Early borrowers in Europe this year will be hoping that investors in the leveraged loan market prove as eager to lend and as compliant on pricing as they were during the closing months of 2017.

But some of the loans that priced late last year have not traded up strongly in the secondary market, and this could signal a warning to the next wave of companies hoping to lock in cheap rates on their debt.