Leveraged Loan Sales Hit Record High in July Amid Junk Borrower Surge

Friday, Aug 1, 2025 9:40 am ET1min read

US leveraged-loan issuance reached a record high in July with $222.2 billion in loans launched, surpassing the prior high of $206.7 billion in January. Junk-rated borrowers repriced debt to save companies millions in interest expenses. The market saw over 180 new leveraged-loan tranches, with managers of collateral loan obligations and exchange-traded funds flush with capital. Elevated demand for floating-rate debt like leveraged loans due to uncertainty around the Federal Reserve's interest-rate stance allowed issuers to push for more favorable terms.

Leveraged Loan Sales Hit Record High in July Amid Junk Borrower Surge

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