The U.S. leveraged loan market, as yet unruffled by the shift to a higher-for-longer view on interest rates, may soon join in the pain being felt in other asset classes.

People walking along Broadway in SOHO
Shoppers walk along Broadway in the SOHO neighborhood in New York, US, on Wednesday, Dec. 28, 2022. Retail sales in the US during the holiday shopping season from November 1 to December 24 were up by 7.6% from a year before, according to the Mastercard SpendingPlus survey. Photographer: Victor J. Blue/Bloomberg
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