While fees and spreads on loans to investment-grade companies appeared to reach a floor in the first quarter, some bankers say pricing is only now heading for the basement.

Fees and spreads on loans to companies at the lower end of the investment-grade class are continuing to shrink. Average drawn spreads for multiyear loans to BBB-rated companies fell to 29 basis points in the second quarter, down 28% from 40.25 just three quarters ago. And observers are worried they will continue to drop.

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