Risky Loans Top Credit Markets After Record-Breaking Month
- Asset class returned 4% this year as high rates boost appeal
- Strong inflows help borrowers reprice debt at lower costs
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Investors are pouring cash into leveraged loans, making the risky asset class a star performer in credit markets as the prospect of higher-for-longer interest rates boosts the appeal of floating-rate debt.
US Leveraged loans have become some of the biggest winners in global fixed income this year, netting 4% for investors so far in 2024 to top the charts along with Asia-Pacific credit, according to data compiled by Bloomberg. Investment-grade corporate bonds — which trade closely to government debt — have lost 1.5% on average through May 30, by contrast.