Despite a fresh default from energy services company Proserv Group, the default rate of the S&P/LSTA Leveraged Loan Index slipped for a second consecutive month, closing out May at 2.12%.
The rate by principal amount is down from 2.37% at the end of April, reflecting the fact that three issuers dropped off the 12-month rolling calculation. Without Proserv, the default rate would be 2.09%.
The default rate has eased from a three-year high of 2.42% in April, but remains significantly higher than the 18-month low of 1.36% at the end of July 2017. – Rachelle Kakouris
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