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From Bad To Worse: Leveraged Loan Managers Fret As Investor Cash Dwarfs Deal Flow

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.

leveraged loan technicals

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.

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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
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