Leveraged loans are delivering the smallest returns at the start of a year since 2008 as the Federal Reserve and other regulators warn that the $561 billion market may have become too frothy.

Speculative-grade loans have gained 2.1 percent in 2013, compared with an average of 5.6 percent in the same period the last four years, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index. JPMorgan Chase & Co. is forecasting the debt will return from 5 percent to 6 percent in 2013, or about half the gains seen last year.

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