Blazing Hot Leveraged-Loan Market Tops Record, Nears Another
- Loan funds just saw record cash influx, Refinitiv Lipper says
- The S&P/LSTA loan index climbed to a 14-year high this week
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The leveraged-loan market is so hot in the U.S. that it just broke one record and is nearing another set during a buyout boom a decade and a half ago.
High inflation is driving investors into the space, since leveraged loans have floating interest rates that become more appealing when the Federal Reserve hikes borrowing costs -- which the central bank is preparing to do.