Leveraged Loan Funds See Record Outflow on Investor Fears (2)

US leveraged-loan funds had their biggest-ever weekly outflow as investors dump corporate debt across the board on concern that the tariff-spurred market turmoil will hit the economy.

An estimated $6.5 billion was pulled from the funds in the week ended Wednesday, according to data from LSEG Lipper, as prices on the risky debt hit their lowest since mid-2023. The previous record outflow of $3.6 billion was set in December 2018.

The loan market is getting hit by outflows amid expectations that the Federal Reserve will be forced to cut interest rates earlier than expected, while a cohort of credit investors ...