Financial Times FT.com

Junk-rated loans hit new lows

By Paul J Davies in London

Published: July 9 2007 22:08 | Last updated: July 9 2007 22:08

The price of junk-rated loans in the US and European markets has tumbled in the past couple of weeks as investors begin to turn away from the asset class, according to new data from S&P LCD, the market information service.

US leveraged loan prices have fallen to their lowest level in more than four years, while in the derivatives markets a sell-off has pushed the prices of both US and European loan risk to less than the face value of the loans themselves.

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