Blazing Hot Leveraged-Loan Market Tops Record, Nears Another (1)

The leveraged-loan market is so hot in the U.S. that it just broke one record and is nearing another set during a buyout boom a decade and a half ago.

High inflation is driving investors into the space, since leveraged loans have floating interest rates that become more appealing when the Federal Reserve hikes borrowing costs -- which the central bank is preparing to do.

Retail investors are piling into loan funds. They added a record $2.25 billion to them in the week ended Wednesday, according to Refinitiv Lipper.

And the flood of demand drove loan prices this week ...