Credit Brief: Losing 80% on Loans; What Debt Ceiling Risk?

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• Distressed leveraged loans are trading at levels implying recoveries of 20 cents on the dollar, far below historical norms of around 70 cents;
• Credit markets are remarkably unperturbed about a possible US Treasury default;
• Why US corporate profits reached fresh records in the first quarter.

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To contact the reporters on this story:
Taryana Odayar in New York at todayar1@bloomberg.net;
Caleb Mutua in New York at dmutua@bloomberg.net

To contact the editors responsible for this story:
Nina Trentmann at ntrentmannma@bloomberg.net ...