Despite a bankruptcy filing from U.S. footwear/apparel company Nine West, the default rate of the S&P/LSTA Leveraged Loan Index eased to 2.37% in April from a three-year high of 2.42% at the end of March. The slight decline reflects the fact that Payless ShoeSource rolled off the 12-month calculation.
The current rate, though still close to the three-year high, remains well inside the 3.1% historical average. By number of issuers, the rate now stands at a 16-month high of 1.95%, versus 1.93% in March. – Rachelle Kakouris
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