Risk appetite in the US credit market may be starting to cool.

J.P. Morgan has led the issuance of a $500 million leveraged loan for Mativ Holdings Inc., priced at one of the biggest discounts this year, indicating that investors are demanding more protection as market volatility increases. According to sources, the loan, aimed at refinancing existing debt, was priced at 95 cents on the dollar with a spread of 450 basis points above the benchmark rate. So far this year, only two leveraged loans in the United States have been priced at a larger discount, suggesting that the market may be becoming more selective.