Loan Investors Shed Tech Company Debt as Earnings Fears Spread

Investors’ fears about the technology industry have spread from equity markets to leveraged loans as money managers grow more concerned about interest rates rising more than previously expected.

Loans for junk-rated tech companies have been performing worse than the broader loan market since September. Prices for those loans averaged about 93 cents on the dollar in February, compared with 94.6 cents for leveraged loans as a whole, according to Bank of America Corp. In August, both prices were similar.

Price movements for loans tend to be muted compared with equities, where hardware and equipment companies saw their shares drop ...