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Secondary loan prices plunge to six-year low

The prices of leveraged loans in the European secondary market have crashed to their lowest level since 2001, underlining the paucity of demand for debt used in buyouts and knocking bank's hopes of selling fresh loans.

The average secondary bids on Europe’s top 40 leveraged loans dropped to 94.93% of face or par value yesterday, the lowest level for more than six years, according to information provider Reuters.

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