Deals
Leveraged Loan Rally Extends as Cash Pours Back in
- Investors see bargains after bounce from lowest since 2016
- ETF flows turning positive adds further boost to sentiment
This article is for subscribers only.
U.S. leveraged loans traded higher in the secondary market on Monday as money flowed back into exchange-traded funds. The market is underpinned by the rates outlook and firm economic fundamentals, though it remains susceptible to another big drop in equities.
Building on Friday’s rally -- the best one-day loan return in 10 years -- investors continued to buy the more liquid loans in the secondary. Dell’s $5 billion term loan rose by about 0.5 cents to 98.5 cents on the dollar Monday, after gaining 2 cents on Friday, according to loan traders who are not authorized to speak publicly.