Junk loans are suffering from their popularity

Investors are falling back in love with the U.S. leveraged-loan market.

In the first three weeks of 2017, investors plowed $2.5 billion into loans to speculative-grade companies, accounting for almost 2 percent of total assets managed by these funds, according to Bank of America Merrill Lynch data. Investors are looking to take advantage of the fact that these loans pay higher rates as benchmark yields rise, as opposed to bonds, which are generally pegged to fixed yields. Read more


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