Despite a rally in the final week of the month, the S&P/LSTA Index still shed 0.53% in February, after dropping 0.65% in January.
The largest loans, which constitute the S&P/LSTA Loan 100, continued to outperform in February, falling a more modest 0.21%, after losing 0.43% in January.
February’s loss extends the asset class’s run of red ink to a record nine months, topping the prior record of six months, from the second half of 2008. The losing streak is a product of (1) generally weak technical conditions, (2) negative investor sentiment across the capital markets, and (3) growing concerns about the state of the credit cycle. – Steve Miller
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