The European secondary loan market recorded the best performance for more than a year in September, propelled by strong investor demand for loans.
Consequently, the S&P European Leveraged Loan Index (ELLI) gained 0.56% in September, a 16-month high, rounding out an already strong quarter for loans. Indeed, the ELLI returned 0.37% in July and 0.51% in August, following a monthly average of only 15 bps during the first half of 2018. As a result, the quarterly gain of 1.44% was a two-year high — edging out 2Q17’s return of 1.43%, and up from a rather flat second quarter, which gained just 0.16%. Despite the strong third quarter, the year-to-date return continued to lag 2017, running at 2.35%, versus 3.49% in the first nine months of 2017. – Staff reports
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