The US leveraged loan market remains extremely constructive despite a plethora of headlines – both geopolitical and financial – which could hint at downward pressures or even a potential gap out, yet lenders say for the moment, strong technicals and decent earnings have allayed potential market unease. Forty nine percent of names in the LPC 100 are currently trading north of par amid strong lender liquidity and steady lender demand for new assets. In this context, retail fund flows have been supportively positive in the last several weeks and year to date new CLO volume topped US$111bn through the end of August with an additional US$6bn of issuance pricing in the first few weeks of September.
Latest news
US Private Credit Transparency Highlights Uneven BDC Performance
Credit performance across business development company (BDC) portfolios remains uneven, although reported losses and non-accruals were broadly stable quarter over quarter, according to Fitch Ratings’ Private Credit Transparency Monitor for 2Q26.
Density of TVPI at 10 years after inception by fund size
Marquee managers seem to be victims of their own success. Strong performance brings in more capital, and the desire to grow AUM and please public shareholders inevitably leads to returns clustered around the market average.