US Leveraged Loan Sales Hit Record $986 Billion in Repricing Run

Companies have issued a record $986 billion of debt in the US leveraged loan market this year, mostly to cut interest expense on existing debt.

That figure surpassed 2017 as the busiest year for new issuance, according to Bloomberg-compiled data going back to 2013. Most of this year’s volume has come from companies refinancing current obligations or locking in lower margins through repricing.

The type of deals getting done underscores a painful market dynamic for investors: too much leveraged loan demand and not enough supply of new debt for uses like buyout financing.

Issuers are able to slash margins ...