U.S. Leveraged-Loan Price Index Soars to the Highest Since 2007

U.S. leveraged loans continue to hold sway over investors looking for protection against inflation and rising rates, with average prices on the debt reaching the highest level since July 2007.

The S&P/LSTA Leveraged Loan Price Index jumped 0.05% to 99.07 on Wednesday as buyers pile into the risky debt. Demand for the asset class has been robust for some time as its floating-rate benchmarks prove to be a big draw in a potentially volatile increasing-rate environment.

These rate concerns have been a tailwind for funds that invest in U.S. leveraged loans. They pulled in about $1.84 billion of cash ...