First Brands’ stunning collapse weighed heavily on leveraged loan performance in September despite otherwise steady market fundamentals. At the same time, the Federal Reserve’s September rate cut — its first in 2025 — shifted the outlook for returns, reducing interest income but offering relief to highly levered borrowers. Against this backdrop, issuance rebounded and technicals began to balance, capping a record-setting quarter for the leveraged loan market.  Marina Lukatsky of Pitchbook LCD wrote this.