For leveraged loan managers trying to put money to work in the loan asset class, the technical environment went from bad to worse in April.
It was simply a case of too much capital chasing too few opportunities, as visible inflows exceeded net new supply by $11.2 billion, following March’s record demand surplus of $19.8 billion. The ongoing supply drought is largely responsible for today’s technical strength.
In April, the universe of S&P/LSTA Index loans contracted by $418 million, to $837.8 billion, after dropping $4.4 billion in March. It was the first back-to-back months of shrinking supply in three years.
This analysis is part of a longer story, available here to LCD News subscribers, that also details
- Leveraged loan outstandings
- M&A loan volume
- Monthly loan repayments
- CLO issuance
- Loan fund flows
- Leveraged loan secondary prices
- Leveraged loan yields
- Repricing volume
- Leveraged loan forward calendar