latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/leveraged-loan-news/us-leveraged-loans-lose-0-90-november-asset-class-continues-4q-swoon content
BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
PRIVACY & COOKIE NOTICE
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In this list

US leveraged loans lose 0.90% in November as Asset Class Continues 4Q swoon

THL Credit joins growing group of credit firms applying ESG criteria

Earnings at leveraged loan issuers slump prompting more scrutiny for $1.2T market

Retail investors pull $4B from high yield bond funds amid trade unease

Insurance regulators mull crackdown on ratings of CLO 'combo' notes


US leveraged loans lose 0.90% in November as Asset Class Continues 4Q swoon

US leveraged loan returns

The U.S. leveraged loan secondary market saw a widespread selloff in November amid stock market volatility and some biting losses in broader financial markets. The loan asset class declined 0.90% last month, its worst performance in almost three years, putting the 2018 YTD return behind 2017 for the first time this year, at 3.06%, versus 3.71% a year ago.

The last time the S&P/LSTA Leveraged Loan Index posted a loss of such magnitude was in December 2015, when loans declined by 1.05%. There are many parallels to that period three years ago—global capital markets posted heavy losses across the board, and for loans specifically, new issuance dried up amid heavy withdrawals from retail loan funds.

Loans have now been in the red for two consecutive months, which had not happened since the first two months of 2016. In fact, loans gained an average of 44 bps per month between January and September of this year, entirely from coupon clipping. Although secondary prices gyrated somewhat throughout the first three quarters, on average, market value remained flat during this time. – Marina Lukatsky

Try LCD for Free! News, analysis, data

Follow LCD on Twitter.

LCD comps is an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.