Cracks Begin to Form in the Leveraged Loan Market

The video discusses the current state of the loan market, highlighting the increased risks and challenges in pricing aggressive loan deals. It explores whether these issues are structural or seasonal, noting a lack of demand due to economic conditions and potential interest rate cuts. The video also addresses the record outflows from loans, investor concerns, and the role of collateralized loan obligations (CLOs) in the market. It concludes with a discussion on private equity involvement and the contrast between high yield and high-quality issuance.

What impact has the record streak of outflows had on investor sentiment?

In what ways does private equity involvement affect the loan market?