Inflation exacerbated by supply-chain issues and geopolitical developments is weighing on credit profiles, along with slower economic growth and tightening monetary policy, said Lyuba Petrova, head of U.S. leveraged finance at Fitch Ratings. Leveraged loans are usually taken out by companies that have high levels of debt, usually with non-investment grade credit ratings. "The market turmoil and abrupt slowdown in the second quarter sparked a downturn in the leveraged finance markets, causing a number of the deals across various market participants to get marked down," Bank of America's chief financial officer, Alastair Borthwick, said on anearnings callon Monday.