The European secondary loan market continued to rally in February as the S&P European Leveraged Loan Index (ELLI) returned 0.67%, bringing the year-to-date gain to 1.41%. This is the second-strongest return recorded for the January to February period in six years, falling just one basis point behind the same period in 2017, and roughly double the 0.68% posted at this time last year.
Of course, the strong gains in the last two months follow equally strong losses in November and December. To put the recent swings in performance into perspective, European loans gained an average of 18 bps in the last 12 months, and an average of 22 bps in the last 24 months.
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