Leveraged borrowers jump at the opportunity to
access debt capital amid market upturn
Source: Debtwire Par, Markit
Investors in the leveraged loan and high-yield bond markets rejoiced following a better-than-expected inflation reading last week that sent equity markets soaring. On Thursday (10 November) the US Bureau of Labor Statistics reported that core inflation slowed to 7.7% in October, well below estimates of 8% and an encouraging sign that the Federal Reserve’s monetary tightening has been effective in slowing price growth. Many investors now expect the Fed to begin to reduce its interest rate hikes going forward, likely to 50 basis points (bps).