Leveraged loan prices sink in trading as market volatility heats up

Amid October’s volatile market conditions, the average price at which first-lien institutional loans broke into the secondary slid to 99.20% of par, from 99.75 in September.

Another indication of the rocky conditions was that a mere $19.6 billion of loans broke for trading in October. That’s the lowest total since January, which is typically a slow month in terms of volume as arrangers begin to roll out deals after the holidays. –Kerry Kantin

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  • Averaged difference between issue and break price
  • Averaged new-issue yield to maturity for leveraged loans