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In this list

Improved loan market technicals led to positive sentiment as 2nd quarter closed

Market pros see leveraged loan default rate holding at low levels

S&P: BBB downgrade risks in Europe look manageable

As specter of rate cuts grows, investors retreat from leveraged loan asset class

Retail investors flock to US high yield bond funds with $1.8B inflow


Improved loan market technicals led to positive sentiment as 2nd quarter closed

After a monthlong setback, from mid-May through mid-June, the loan market caught a bid during the final two weeks of last month, in part as a result of improved technical conditions. As usual, Europe was the catalyst.

Encouraging news from that troubled region – first, the Greek election in mid-June that for the moment quelled worries about a eurozone exit, and then the June 29 European Council agreement to allow its European Stability Mechanism rescue fund to infuse capital directly into troubled banks – pulled investors off the sidelines.

In fact, the technical situation in the loan market was in relative balance even during the late-May/early-June correction. Bolstered by strong CLO activity, visible inflows during June totaled $3.9 billion, or $2.6 billion less than the amount of new loans that entered the S&P/LSTA Index during the month.

This analysis is part of a longer LCD News story, available to subscribers, that also details

  • Institutional loan forward calendar, visible repayments
  • High yield fund flows vs loan takeouts
  • CLO volume
  • Average yield to maturity, B+/B loans
  • Average bid of loan flow names (active issues)