Demand for leveraged loans has been muted in recent weeks, with redemptions outpacing investments by $22.59b in the week ending June 26th. The Invesco Senior Loan ETF (BKLN) recorded June inflows of just 55.3b, a significant slowdown from the $3258b added in May and the $528m added in April, but still a welcome turnaround from the $948mm exodus that took place in February.
After beginning the year at an average price of 96.93, secondary market loan pricing declined to 94.60 on March 3 before rebounding to 95.72 by May 14, and as of June 29, slid back down to 95.09 according to the Bloomberg US Leveraged Loan Index. Despite recent volatility, the index has delivered a year-to-date total return of 1.27%.
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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.