“Loan issuance is falling short of last year’s record $414 billion in the first six months after investors began pulling money from loan funds in April, snapping an unprecedented 95 straight weeks of inflows. Banks last year arranged a record $695 billion of U.S. loans sold to institutional investors such as mutual funds and collateralized loan obligations, according to data compiled by Bloomberg.
“We had a minor correction in the loan market,” Gerry Murray, head of JPMorgan’s North America leveraged finance business, said in a phone interview. “There’s still plenty of capacity and deals are getting done with very attractive terms.”’
