Red Hot Demand for Risky US Dollar Loans Drives Bigger Deals

Firms are borrowing more than expected in the US leveraged-loan market as they take advantage of strong investor appetite for riskier debt.

Banks increased the size of seven proposed corporate loans by a combined $2.6 billion this week, according to data compiled by Bloomberg. Insurance broker Alliant Holdings LP, for example, nearly tripled the size of a loan to $1.35 billion just hours after its Thursday launch. It was also sold at a smaller discount than initial guidance.