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Leveraged loan break prices push higher in November as volatility ebbs

With the broader loan market on better footing last month, the average price at which first-lien institutional loans broke into the secondary market rose to 99.58% of par, from 99.20 in October.

It was also more profitable to play in the primary last month, as the gap between the average break price (99.58) and average OID (98.72) grew to 86 bps in November – the widest level since July 2013 – from 60 bps in October.

LCD subscribers please click here for full story, analysis, and the following charts:

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

Loan break prices push higher in November as volatility ebbs