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Clock Strikes Midnight On Leveraged Loan Cinderella Story As Outflows Hit New Record

"It's in the hole!"

"It's in the hole!"
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1 comment on “Clock Strikes Midnight On Leveraged Loan Cinderella Story As Outflows Hit New Record

  1. “Broken records, anybody? If it feels like you’re reading this news for the fifth consecutive week, that’s because you are – basically”

    The warning signals were clear. I did liquidate all positions in BKLN and LFRAX 5 months ago. This one is hard to watch. People get desperate for any kind of yield after 10 years of drought. Hopefully in the end, the yield on this junk debt will more appropriately reflect the extreme risk of these loans. The yield on these loans should be well above 7-8%. I don’t think we will ever get there. 4-5% yield is not appropriate.

    Thanks for the article.

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