Financial Times reports falling leveraged loan values indicate sustained uncertainty

The Financial Times reports today on the sharp decline of leveraged loan values based on various sources. The recent financial turmoil has adversely affected the loan market. Average US bids plummeted 330 basis points, to 84.28% of face value, and the European counterpart saw a 197bp decline to 86.31%. Uncertainty and illiquidity are still prevalent where bid-offer spreads are wide and buyers are hesitant. While these developments are disconcerting for banks that mark to market, funding needs remain their primary concern.
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