The leveraged loan market just achieved something it hasn’t been able to do since 2008 -- moved within $100 billion of the U.S. high-yield bond market.
Fueled by demand from collateralized loan obligations and retail investors eager for protection against rising interest rates, the amount of leveraged loans outstanding has doubled since 2010 to more than $1 trillion, according to a note from Bank of America Merrill Lynch that cites S&P Global Market Intelligence data. There’s around $1.1 trillion parked in high-yield bonds, which have increased by less than a quarter in the same period.
