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Leveraged Loans Outperform Junk Bonds by Most Since 2023

US leveraged loans are on track to outperform junk bonds this month by the widest margin in two and a half years. Some borrowers have shifted debt financing from bonds to loans as markets are roiled by the conflict in the Middle East. This marks a significant shift in debt market preferences among major borrowers.

US leveraged loans are on track to outperform junk bonds this month by the most in two and a half years, as some borrowers have shifted debt financing to loans while markets are roiled by conflict in the Middle East.