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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