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(BRENDAN MCDERMID/REUTERS)

Financial Times

Junk bonds are so last year. For the in-crowd, it’s leveraged loans

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Junk bonds are the hot investment vehicle – of 2012. This year’s darling is leveraged loans, the low-rated corporate debt that sits atop bonds in a company’s capital structure (lenders are repaid before bondholders in bankruptcy).