Leveraged Loans Shelved at Fastest Pace in Four Months

The video discusses the current state of the leveraged loan sector in the U.S., highlighting a significant drop in loan prices to their lowest since 2016. It notes the shelving of several loan deals and the lack of borrower-friendly changes in recent weeks. The video also mentions the high short interest in BKLN, a major leveraged loan ETF, and the sector's dramatic expansion, now surpassing the U.S. high-yield bond market. The discussion concludes with a look at the potential economic headwinds as we approach 2019.

What does the increase in short interest on BKLN indicate about investor sentiment?

What are some potential headwinds to the economy as we head into 2019?