At Long Last, US Leveraged Loan ‘Supply’ Tops Investor Demand

loan supply demand chart

For the first time in 16 months, the supply of U.S. leveraged loans will outpace investor demand, and in a big way.

Subtracting loan fund flows and CLO issuance (LCD’s proxy for demand) from the net change in loan outstandings per the S&P/LSTA Index (our proxy for supply), the market saw a whopping $22 billion supply surplus in June.

This is, of course, a dramatic turnaround from the shortage of paper that has characterized the loan market since 2Q16. That shortage was as deep as $14 billion in January of this year and has averaged a withering $6.3 billion over the prior 15 months. – Marina Lukatsky

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This story is taken from analysis which first appeared on, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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