Deals
As Fed to Oaktree Fret Risks, Leveraged Loans Hit New Milestone
- Outstanding U.S. leveraged loans overtake high-yield bonds
- FOMC watching for ‘possible risks to financial stability’
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The growing chorus of voices fretting the boom in leveraged loans may wish to look away now -- because the market just got even bigger.
The total of outstanding U.S. dollar leveraged loans has hit $1.27 trillion, according to data compiled by Bloomberg, overtaking high-yield bonds in the past week to cement their status as the go-to financing source for speculative-grade companies. October is on course for the highest issuance since June, while junk bond sales are the slowest since 2009.