The Bloomberg US Leveraged Loan Index (Ticker: LOAN) returned 0.79% in July and has gained an additional 0.35% through August 11, bringing its year-to-date return to 2.46%. This marks six consecutive months of positive returns, although performance continues to trail the 4.00% return recorded over the same period last year.
Secondary market loan prices have also recovered from their lows earlier in the year. After beginning 2026 at an average price of 96.93, the index fell to 94.60 on March 3 before rebounding to 95.72 by May 14. As of August 11, the average price stood at 95.42.
Meanwhile, European leveraged loans have posted more modest gains. The Bloomberg European Leveraged Loan Index (Ticker: ELOAN) returned 0.09% in July and 0.17% month-to-date, bringing its year-to-date return to 2.17%.
Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.