The only loot I've ever gotten from defeating bosses are consumables, like the type of stuff you can buy at the start of every day using your Badge Points or the single-use things towards the bottom of the store window.
If I return to the game after some time away, the screen is packed with notifications about the loot that the bosses have dropped in my absence.
Strategy-wise, I don't think 1% more boss loot is really worth it - there are a couple of these items that can be useful (ie, Cripple Spawner for instance) but most are minor, short-lived bonuses at best.