Leveraged Loan Funds Suffer Record Outflows of $2.5 Billion

The video discusses the dynamics of leveraged loans, focusing on liquidity issues and macroeconomic factors that contribute to a negative outlook. It contrasts this with the positive aspects of underlying credit. The discussion shifts to rate expectations and their influence on market flows, particularly in relation to Fed tightening. Finally, it evaluates the risk-reward balance in loans, suggesting they offer better returns compared to high yield or investment options.

What are the macro reasons that lead to a negative outlook on leveraged loans?

How does liquidity affect the valuation of illiquid credit assets?

What factors contribute to the positive outlook on leveraged loans?

In what way do rate expectations influence the loan market?

Why do some investors view loans as a rates play?