Firms that could once count on virtually unfettered access to the bond and loan markets are being turned away.
He also believes bond markets will be resilient if the Fed accelerates its tightening.
Fund managers have sold more than $200 billion of U.S. CLOs this year.
The pandemic allowed both lenders and private equity sponsors to see who they want to work with in times of crisis.
Leveraged loan issuance is poised to eclipse high-yield bonds.
A rise in inflation set to accompany the post-pandemic economic boom.
Fitch Ratings projects 7% to 8% of leveraged loans will default by the end of 2021.
Critics say they’d rather see banks marshal resources for a rocky road ahead than continue paying shareholders.
While the Fed has yet to buy a single bond, its pledge threw a lifeline to the market.
The industry may be left out even as the Fed broadens the program.
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