May
20
Leveraged-Loan Buyers Pinched by Shrinking Yields in Supply Drop
ByInvestors who purchase risky corporate loans are being squeezed by borrowers that are taking advantage of a supply shortage to cut rates on their existing debt, sending yields to their lowest in almost a year-and-a-half.
Yields have fallen to 4.6 percent from more than 6 percent at the beginning of 2015 as borrowers from PetSmart Inc. to the owner of Burger King and Tim Hortons reduced the interest they pay, according to data compiled by Bloomberg and Standard & Poor’s Capital IQ Leveraged Commentary & Data. Companies are seeking to cut rates on more than $29 billion of loans this month, the most since at least 2013, Bloomberg data show…
Leveraged-Loan Buyers Pinched by Shrinking Yields in Supply Drop
