Aug 14 Reuters Leveraged loan deals are expected to pick back up after a stabilization in markets over the past week, although some investors say they are cautious about junkrated loans if the economy weakens.

Borrowers pulled back on leveraged loan deals last week, following disappointing jobs data on Aug. 1 and Aug. 2 that raised forecasts for aggressive interest rate cuts and spurred concerns about lowerrated debt.

A total of six leveraged loans worth 3.3 billion sold last week, which falls well short of the 10 billion weekly average this year and is the worst week for issuance outside the holidayshortened first week of July, according to PitchBook LCD data.

One junkrated loan deal sold on Monday, airline JetBlue Airways39; fiveyear term loan, according to PitchBook LCD. JetBlue originally sought a 1.25 billion loan, but downsized it to 750 million and upsized its bond offering to 2 billion from 1.5 billion, according to Informa Global Markets. JetBlue did not immediately respond to a request for comment.

At least two leveraged loan deals hit the market on Tuesday, including a 160 million addon to virtual dataroom Datasites crossborder term loan and a 253 million repricing of forprofit education operator Adtalem Global Educations term loan, according to PitchBook. Datasite and Adtalem did not immediately respond to a request for comment.

Lower rates can be good news for highly indebted companies.

There39;s no doubt if the Fed ends up cutting more as is priced in…