
Weekly Notables
The loan market was steady this week. The Morningstar® LSTA® US Leveraged Loan Index (Index) returned 0.42% for the seven-day period ended May 8. The average Index bid price gained 26 bp, closing out the week at 96.08.
Against the loan market backdrop, total new issuance was muted this week. Total institutional volume was about $2.2 billion this week, down from $6.3 billion last week. In the forward calendar, net of the anticipated $19 billion of repayments not associated with the forward pipeline, the amount of repayments now outstrip new supply by about $2.3 billion, versus $3.7 billion last week.
Trading levels in the secondary market moved higher during the week. Bid prices increased by 24 bp, 32 bp and 105 bp for Double-Bs, Single-Bs and CCCs, respectively. Performance across rating cohorts was led by the riskiest segments, as Double-Bs, Single-Bs and CCCs returned 0.37%, 0.43% and 0.87%, respectively.
There were six CLOs deals that priced during the week, pushing the YTD volume to $66.6 billion. On the other hand, retail flows were negative for ten consecutive week. There were about $231 million that exited the funds during the week. The majority of this week’s outflows came from ETFs, which saw $196 million in withdrawals, while mutual funds saw outflows of $35 million. On a YTD basis, total outflows amount to $5.9 billion, with $3.7 billion coming from ETF and $2.2 billion from mutual funds.
There were no defaults in the Index this week.




Source: Pitchbook Data, Inc./LCD, Morningstar ® LSTA ® Leveraged Loan Index. Additional footnotes and disclosures on back page. Past performance is no guarantee of future results. Investors cannot invest directly in the Index. *The Index’s average nominal spread calculation includes the benefit of base rate floors (where applicable).