To think it was less than three months ago that we wrote that “leveraged loan demand is off the charts as dangers mount.” Since then, a lot has happened in the credit market, with yields and spreads blowing out in credit in a delayed response to the turmoil in the equity market, eventually hitting the leveraged loan market too, where as we wrote last week, loan prices have fallen precipitously as loan funds suffered dramatic redemptions in recent days, most notably the Blackstone leverage-loan ETF, SRLN, which last week saw its largest ever one-day outflow since its inception.
