Hawkish Central Banks Send Leveraged Loan Prices to Their Highest Levels in Near 15 Years

Hawkish Central Banks Send Leveraged Loan Prices to Their Highest Levels in Near 15 Years
A view of the Federal Reserve Building in Wash., on Sept. 16, 2008. Jim Young/Reuters
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U.S. leveraged loan prices have surged to their highest levels since 2007 as investors snap up assets that will offer compensation with central banks moving into a rate hike cycle.

Leveraged loans are often taken out by companies that have high levels of debt, usually with non-investment grade credit ratings, and are often used by private equity firms to fund their acquisitions of these companies.