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 Leveraged Loans Return 3.36% to Investors YTD
The Bloomberg US Leveraged Loan Index (Ticker: LOAN) returned 0.96% in August and has gained an additional 0.28% through September…
PE dry powder
The capital that is being raised is flowing overwhelmingly to the largest, most established managers.
Private Credit Defaults 101: Where Are We in the Cycle?
In July 2007, Citigroup’s Chuck Prince told the Financial Times, “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We are still dancing.”