US Leveraged Loan Market Shows Mixed Signals Amid Supply Shortage and Sector Divergence
The US leveraged loan market posted steady returns in May with the Morningstar LSTA index gaining 0.51%, but underlying tensions persist as technicals remain supportive while secondary prices stagnate. A growing divide between high-performing sectors like Software and struggling ones such as Building Products highlights increasing bifurcation, with distressed loans accounting for around 12% of total holdings.
Topics: CLO issuance leveraged loans loan repricing sector performance