DISTRESS WATCH: Leveraged Loans Drive Up Troubled Debt Tally

The leveraged loan market just launched a record $105 billion of deals in one week, and prices in a market index reached the highest level since the Federal Reserve started to rapidly hike rates in 2022.

In the riskiest part of the market, however, distress is proving to be persistent. The amount of loans trading below 80% of face value reached $88.9 billion in the week ended Dec. 6, the highest reading in four months, according to data compiled by Bloomberg News. Distress within corporate bonds, meanwhile, have steadily declined, and loans now represent 17.3% of the global distress tally, ...