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Oct.11 — Leveraged loans originally worth about $40 billion are staging their own private meltdown.
Loans tied to more than 50 companies have lost at least 10 percentage points of face value in just three months, according to data compiled by Bloomberg. The list is growing as lenders and credit raters lose patience amid the slowing economy with borrowers that took on mountains of debt to fund private equity buyouts, dividends and other transactions that didn’t improve earnings. Bloomberg’s Jonathan Ferro sat down with Tallbacken’s Michael Purves, Schroder’s Andy Chorlton and George Bory of Wells Fargo to discuss their outlook for credit markets in the U.S.