Leveraged Loan Market Shows Signs of Thawing

The video discusses the recent dislocation in the leverage loan market and how banks were unprepared for it. They responded by holding loans and offering discounts to sell them. The market has shown signs of recovery, but caution is still advised. Selective investment strategies are recommended, especially in high yield bonds. CLOs have taken a wait-and-hold approach due to massive outflows. Banks are becoming more cautious in negotiations, with a return to some safeguards.

What was the impact of the liquidity squeeze on buyers in the leveraged loan market?

In what ways are banks becoming more cautious in their dealings with investors?