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US Leveraged Loan Default Rate Dips to 1.61%

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US Leveraged Loan Default Rate Dips to 1.61%

leveraged loan default rate

Despite two fresh triggers from the embattled retail sector, the U.S. loan default rate fell to a 13-month low of 1.61% in November, according to the S&P/LSTA Leveraged Loan Index

The rate, down from 1.92% in October, has declined significantly after hitting a three-year high of 2.42% at the end of the first quarter.

By volume, the total of default debt outstanding slipped to $15.3 billion in November from $18 billion in October, as four issuers—Pacific DrillingExGen Texas PowerCumulus Media, and Walter Investment Management—rolled off the 12-month calculation.

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