Limping to Finish Line: Leveraged Loans lose 0.91% in 2014′s 4Q

US leveraged loan returns
The rocky climate in the U.S. leveraged loan market of late is reflected in the S&P/LSTA Index, which saw its worst quarter performance -wise since the third quarter of 2011, with a return of negative 0.91% between Oct. 1 and Dec. 18.

The analysis is part of a longer LCD News story, available to subscribers here, that also details

  • New-issue yields
  • Covenant-lite volume
  • Quarterly leveraged loan volume
  • Quarterly leveraged loan volume, by purpose
  • Repricing loan volume
  • Annual loan volume
  • Dividend loan volume
  • Refinancing loan volume

2014 Leveraged Loan Investor Market: CLOs dominate as retail bid, banks fade

loan investor market

Over the final three months of 2014, the investor base for leveraged loans shifted further away from loan mutual funds, which were wracked by significant outflows. The continued strength of the new-issue CLO market only partially filled the void, forcing arrangers and issuers to sweeten challenging deals to attract relative-value investors in search of wide-margin paper. – Steve Miller

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Leveraged loans rebound, gaining 0.46% today

Loans gained 0.46% today after finishing unchanged yesterday, according to the LCD Daily Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, gained 0.83% today.

In the year to date, loans overall have gained 0.94%.

A full xls of the Daily Index is attached.


Leveraged loan fund assets hit 15-month low as outflows persist

loan fund assets under management

The assets under management of loan mutual funds fell by $1.2 billion in November, to a 15-month low of $151.0 billion, according to Lipper FMI and fund filings. After reaching an all-time high of $175.1 billion in March, loan funds have suffered eight straight months of AUM erosion, during which they have contracted by $24.1 billion, or 13.8%. – Steve Miller

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Capital One Bank hires Gates to head leveraged loan syndications

Capital One Bank appointed William Gates as head of loan syndications.

Gates will report to Steven Tulip, head of capital markets at the McLean, Virginia-based bank. Gates and Tulip are based in New York.

Gates had been a managing director at RBS, where he was responsible for the underwriting and distribution of all loan transactions in the Americas.

Gates was also a managing director in leverage capital markets with UBS. He also worked at Merrill Lynch in Leverage Loan Capital Markets, and was a founding member of Lehman’s loan syndicate group. – Abby Latour

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