Investment banks favour loans over junk bonds

Firms from JP Morgan Chase to Morgan Stanley are shifting their preference to leveraged loans over junk bonds, seeking debt that offers higher claims on corporate assets as the economy slows and profits diminish.

"It's the right time to be getting a little more defensive," said Adam Richmond, a Morgan Stanley credit strategist. "Why not get a similar yield in the loan market as you can get in the bond market without the rate risk?"

via Business feed http://www.scmp.com/business/money/markets-investing/article/1062047/investment-banks-favour-loans-over-junk-bonds