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Harris Associates’ Adam Abbas Talks Leveraged Finance Market Tone

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Fed's Decisions and Inflation Impacts

Exploring the Fed's decision to anticipate rate cuts in 2024 and its impact on the leverage finance market, this chapter highlights the symmetrical nature of risks and the positive outcomes of inflation normalization. It discusses the effects on nominal rates, total returns, and market optimism, influencing corporate issuers' decisions on primary market bond and loan deals. The chapter also delves into the evolving landscape of syndicated loans with the encroachment of private credit deals, leading to increased competition in deal structuring and pricing.

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