A credit downgrade wave has begun to hit the highflying $1.4 trillion U.S. leveraged loan market as the Federal Reserve’s rapid pace of interest rate hikes threatens companies hooked on cheap debt.
Companies that don’t qualify as investment-grade, perhaps because of a large debt load or poor credit history, rushed to take out leveraged loans in the past decade, causing the sector to mushroom to a record size from its post-2008 low of about $480 billion in 2011, according to Refinitiv data.
Now,…
Source link
