As more institutional investors have piled into the bank loan market this year, returns on tranches designed for these buyers have fallen markedly.

The investors, including insurance companies and prime-rate funds, have been clamoring for tranches of leveraged loans with longer terms. As a result, the fees and spreads on those tranches fell throughout the first half, continuing a drop that began in 1995.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.