Investors Prep for Big Hit on Russia-Exposed Leveraged Loans

Investors in leveraged loans exposed to Russia are facing steep losses as they struggle to sell in the secondary market.

Several leveraged loans have lost about 15% of their value since Russia’s invasion of Ukraine, according to several people familiar with the private market who asked not to be identified. Those include LetterOne Holdings SA-backed retailer Holland & Barrett Group and Sweden’s Hilding Anders Holdings AB, the people said.

International sanctions and the war in Ukraine have sapped nearly all liquidity from Russia-exposed assets, which until recently were as tradeable as any other paper. While some loans are frozen by ...