U.S. leveraged loans returned 0.40% in August, down from a respectable 0.74% gain in July, as loan prices in the trading market slid once again, following a temporary reprieve, according to the S&P/LSTA Loan Index.
The relative softness in prices resulted from an increase in net supply of paper on offer to investors as a hefty slug of jumbo M&A credits wrapped up in the syndications market.
So far in 2018 U.S. leveraged loans have returned 3.32%, besting the other asset classes LCD tracks in its monthly analysis, with the exception of equities, which continue to outperform, returning nearly 10% so far this year.
High yield bonds, the asset class most closely associated with leveraged loans, have returned 1.93% so far this year.
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