Deals Resume in Sale of Risky Loan Funds

One of the hardest-hit corners of the global debt markets is showing signs of revival after being virtually shut down by the coronavirus. Sales of new collateralized-loan obligations, or CLOs, have rebounded sharply over the past six weeks as debt investors resume their reach for higher-yielding, riskier debt. Global sales of the funds, which borrow money to buy up bundles of “leveraged loans” made to companies with junk credit ratings, hit $4.9 billion in the first three weeks of June, the fastest pace since early March,…


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