JPMorgan’s Leveraged-Loan Win Survives Supreme Court Appeal (1)

The US Supreme Court turned away an appeal that might have upended the $1.4 trillion leveraged loan market, leaving intact a legal victory for JPMorgan Chase & Co. and other banks.

The justices, without explanation or any published dissent, refused to hear arguments from bankruptcy trustee Marc Kirschner in a clash over a $1.8 billion leveraged loan taken out by the drug-testing company Millennium Health LLC.

Kirschner had argued unsuccessfully that syndicated loans, a type of debt product sold to a group of lenders, are subject to regulation as securities. Leveraged loans, where banks and other financial institutions act ...