Returns on U.S. leveraged loans dipped to a thin 0.012% in November as the asset class felt the effects of a sell-off in the neighboring high yield bond market (which lost 0.27% during the month) and as retail investors continued to tread cautiously around floating rate debt.
The recent performance brings loan returns during the first 11 months of 2017 to 3.71%, a far cry from the 9.15% at the same point in 2016, according to LCD. The loan market rebounded significantly during 2016’s second half, posting out-sized returns, thanks to a long-awaited interest rate hike by the Fed.
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