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Amid Broad Market Downshift, US Leveraged Loan Issuance Slows in Nov.

US leveraged loan issuance

Souring market conditions left U.S. leveraged loan issuers in the lurch last month, as issuance cratered to just $21 billion, the lowest monthly level since April 2016 (excluding August and December readings that are subject to seasonal factors).

The market was perhaps due to slow its pace anyway following a $51.4 billion October, which was the third busiest month of the year, according to LCD.

However, market conditions deteriorated in November amid a sharp equity selloff and continued pressure in the high-yield market. Moreover, investors began pulling money out of the asset class at a rate not seen in some time: Outflows from retail loan funds were logged in four of six weeks through Nov. 28 for a cumulative net outflow of $4.4 billion over that span, according to data from Lipper.

Note: This story details loan issuance for institutional investors. Revolving credits and amortizing term loans are not included in the data.

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