Americas Leveraged Finance Weekly: Investor Caution Weighs on Loan and Bond Activity

  Reporting: Caroline Hagood Relevant Item:Leveraged Finance Tracker  Market Overview Deal activity in the primary market was muted again this week, particularly for leveraged loans. Octus tracked seven new loans announced this week, covering $5.5 billion in total principal. High-yield bonds were a little more active, with 12 deals announced or priced, totaling $8.4 billion in principal. Market participants said investors remain alert and cautious toward new deals coming to market. Although many of the deals to struggle in recent weeks were caused by idiosyncratic reasons, sources noted that both the continued selloffs from AI-related headlines as well as developing tariff policies in the last week have contributed to the market volatility. The spotlight has shifted to other sectors beyond just software, one leveraged finance investor said this week, noting that business services, insurance and the overall banking sector are vulnerable to recent AI-driven fears. Among several deals affected by AI dynamics, Electronic Arts’ highly anticipated $20 million JPMorgan-led debt package was top of mind for leveraged finance participants, Octus reported this week. Sources said investors are reevaluating the buyout deal, including the high-yield bonds and leveraged loans expected to launch imminently, given a belief the company may not be[...]