U.S. Leveraged Loan Price Index Hits More Than Seven-Year High

U.S. leveraged loans are proving to remain a big draw for investors seeking a hedge against inflation with average prices on the debt hitting their highest levels since July 2014 on Tuesday.

The S&P/LSTA Leveraged Loan Price Index increased 0.06% to 98.75, a more than seven-year high, as investors clamor to buy the risky debt that has floating-rate interest payments and helps protect portfolios from inflation -- a worry that has intensified in the first few trading days of 2022.

The new issue loan market is slowly coming back to life after a typical December lull with a few ...