US junk loan market hits by flurry of credit downgrades

US junk loan market hits by flurry of credit downgrades.

The $1.4 trillion hazardous corporate loan market in America has been rocked by the largest wave of downgrades since the height of the Covid crisis in 2020.

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In general, leveraged loans include floating coupons that fluctuate in line with market interest rates.

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The market for risky borrowers increasingly relied on the asset class.

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