US Leveraged-Loan Funds See Second Week of Big Outflows

US leveraged-loan funds had net outflows of over $1 billion for a second-straight week as the war in Iran adds uncertainty to a market that’s been reeling from fears that AI will undermine entire sectors of the software industry.

Investors pulled $1.47 billion from the funds for the week ended Wednesday, according to data from LSEG Lipper.

That follows net withdrawals of $1.54 billion the previous week, the biggest exodus since last April’s tariff-driven turmoil.

Secondary loan prices have dropped, on average, more than 2 cents on the dollar since mid-January, according to a Bloomberg ...