Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home Themes Private Credit

US Companies Slash Borrowing Costs on $400bn Junk Loans: What You Need to Know

by Team Lumida
June 27, 2024
in Private Credit
Reading Time: 3 mins read
A A
0
deadline, debt, money

Photo by geralt on Pixabay

Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Key Takeaways

  1. US companies have repriced $400bn in debt, lowering borrowing costs.
  2. Investor demand for junk loans has driven this repricing trend.
  3. Repricing primarily benefits higher-quality borrowers, leaving weaker companies behind.

What Happened?

US companies have successfully repriced nearly $400 billion in junk loans this year, taking advantage of booming investor demand. According to PitchBook LCD data, this marks the highest volume of repricing deals at this point in the year since 2002.

Borrowers, including Cloud Software Group and Medline, have reduced interest rates on significant loans, benefiting from the equivalent of two quarter-point Fed rate cuts. For instance, Cloud Software Group cut borrowing costs on a $6.5 billion loan by 0.5 percentage points.

Why It Matters?

This surge in repricing activities indicates a strong appetite for junk loans among investors, particularly those involved in collateralized loan obligations (CLOs). As Bob Schwartz from AllianceBernstein noted, the limited supply of new loans has led to fierce competition among investors, driving up prices and enabling companies to secure lower borrowing costs.

The reduced interest expenses provide a financial cushion for highly indebted companies, which have been grappling with the Fed’s high borrowing costs aimed at curbing inflation.

What’s Next?

Looking ahead, the repricing wave is likely to continue as long as investor demand remains robust and the Fed maintains its current interest rate stance. However, the benefits of repricing are primarily accessible to higher-quality issuers, leaving weaker companies with higher borrowing costs.

Investors should monitor the CLO market closely, as its activity is a significant driver of demand for junk loans. The future path of monetary policy and economic resilience will also play crucial roles in shaping the debt market dynamics.

Source: Financial Times
Tags: CLOsDebt repricingFed rate cutsinvestor demandjunk loans
Previous Post

Why Global Investors Are Pouring Billions into India

Next Post

Amazon’s $2 Trillion Valuation: AI and Rate Cuts Drive Growth

Recommended For You

Apollo Targets Wealthy Europeans With New Private Capital Funds

by Team Lumida
2 weeks ago
Private Credit Funds Pivot to Riskier Bets Amid Margin Squeeze

Key Takeaways Powered by lumidawealth.com Apollo is launching three evergreen ELTIF-style private capital funds for European investors (European private credit, global diversified credit, private‑markets secondaries) with minimums as low...

Read more

Wall Street Wins Back M&A Debt from Private Credit

by Team Lumida
2 weeks ago
red and blue light streaks

Key Takeaways Powered by lumidawealth.com Major banks (JPMorgan, Goldman, Citi) have captured mandates on over $20bn of buyout financing as deal activity revives, reclaiming business lost to private credit...

Read more

Private Credit Showing Clear Signs of Stress, Says BofA

by Team Lumida
2 weeks ago
Bank of America Q4 2024 Earnings Analysis

Key Takeaways Powered by lumidawealth.com Bank of America flags rising stress in the $1.7T private‑credit market: higher default rates and more borrowers deferring cash interest. Q2 realized losses at...

Read more

Blackstone Sees Tight Spreads Fueling a Private Credit Boom

by Team Lumida
3 weeks ago
Blackstone Sees Tight Spreads Fueling a Private Credit Boom

Key Takeaways Powered by lumidawealth.com Blackstone says private credit yields an “excess spread” of ~150–200 bps over traded high‑yield and investment‑grade debt, driven by razor‑thin public bond spreads and...

Read more

BlackRock Pauses Fundraising for Asia Private Credit Fund Amid HPS Merger

by Team Lumida
1 month ago
Is BlackRock the New Leader in Alternative Investments?

Key Takeaways Powered by lumidawealth.com BlackRock halted fundraising for its third Asia-Pacific private credit fund following its merger with HPS Investment Partners, completed in July 2025. The firm had...

Read more

Private Credit-Powered AI Boom Risks Overheating as Tech Lending Surges to $450 Billion

by Team Lumida
2 months ago
China’s AI Startups Challenge Global Leaders Amid U.S. Trade Curbs

Key Takeaways Powered by lumidawealth.com Private debt to the technology sector reached $450 billion in early 2025, up $100 billion from the previous year, as lenders fuel AI development...

Read more

Apollo Eyes $18 Trillion European Investment Gap in Defense, AI, and Infrastructure

by Team Lumida
2 months ago
Apollo Eyes $18 Trillion European Investment Gap in Defense, AI, and Infrastructure

Key Takeaways Powered by lumidawealth.com Apollo Global Management is targeting investments in AI, defense, and infrastructure across Europe, where the firm estimates $18 trillion in spending is needed. Co-head...

Read more

Private Credit Losers Emerge From Ruins of German Property Bust

by Team Lumida
2 months ago
white concrete building with flags on top under blue sky during daytime

Key Takeaways Powered by lumidawealth.com Small pension funds and insurers in Germany face significant losses from complex real estate financings amid a property market crash. Pension funds invested heavily...

Read more

Apollo’s Private Credit Strategy Attracts $100M+ as Blockchain Opens New Investor Access

by Team Lumida
3 months ago
Apollo’s Private Credit Strategy Attracts $100M+ as Blockchain Opens New Investor Access

Key Takeaways: Powered by lumidawealth.com Blockchain Innovation: Apollo Global Management, a $785 billion asset manager, is partnering with Securitize Inc. to offer blockchain-based access to its private credit strategies,...

Read more

Jamie Dimon Calls Private Credit Dangerous, Yet JPMorgan Commits $50 Billion to Enter Market

by Team Lumida
3 months ago
Jamie Dimon Calls Private Credit Dangerous, Yet JPMorgan Commits $50 Billion to Enter Market

Key Takeaways: Powered by lumidawealth.com Contradictory Stance: JPMorgan CEO Jamie Dimon publicly warns that private credit could lead to a financial crisis, comparing it to the subprime mortgage boom,...

Read more
Next Post
black Samsung Galaxy smartphone displaying Amazon logo

Amazon's $2 Trillion Valuation: AI and Rate Cuts Drive Growth

Nvidia CEO Reveals Secrets Behind AI Domination Amidst Fierce Competition

Nvidia CEO Reveals Secrets Behind AI Domination Amidst Fierce Competition

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Danone Gains Ground as Shoppers Breathe Easier with Lower Price Hikes

Danone Exceeds Sales Expectations with Strong Volume Growth in Q4

February 26, 2025
Bitcoin Could Drop to $50K Before a Potential Fed-Driven Rally

Bitcoin and XRP Prices Decline Amid Escalating Tariff Fears

April 3, 2025
AI Robot Massages Enter the Spa Scene, Challenging Traditional Therapists

AI Robot Massages Enter the Spa Scene, Challenging Traditional Therapists

July 14, 2025

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018