In an economic downturn, as leverage loans start to be downgraded or default, their prices will fall, and they will become more illiquid. This means that those banks, nonbanks, retail funds, ETFs,...

In an economic downturn, as leverage loans start to be downgraded or default, their prices will fall, and they will become more illiquid. This means that those banks, nonbanks, retail funds, ETFs, insurance companies, and pension funds that hold leverage loans will suffer losses.