Reuters | Fed’s dovish turn sends ripples through US leveraged loan demand

The US Federal Reserve’s decision to hold off on any further interest rate rises for the remainder of the year has sent retail investors fleeing leveraged loans, which are attractive in a rising rate environment because of their floating-rate coupons…
… The softening in retail demand opens up the space for institutional investors to be more selective over credits coming to the market, but some are concerned it may have a cascading effect on the primary side.
“It’s not surprising that we are seeing that preference hit the high yield market rather than the loan market,” said Jon Poglitsch, head of credit research at Highland Capital…

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Lauren Baker