Now that banks' dominance in the European leveraged loan market has faded somewhat, many new investors have entered the sector. And as usual, hedge funds are drawing the most attention. Some hedge funds have been active buyers of European loans for some time, but with increased supply coming into the market off the back of private equity activity, more of their colleagues have followed suit.

The revelation that hedge funds are active in the loan market has caused the inevitable hand-wringing and

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