Returns on U.S. leveraged loans have been slipping steadily since the summer as investors show a decidedly limited appetite for risk. Indeed, loan returns entered negative territory yesterday, and now have lost 0.10% so far in 2015.
The slide in returns coincides with a cash outflow from the asset class. Investors have withdrawn cash from U.S. loan funds for 20 straight weeks, according to Lipper. – Staff reports
You can learn more about the S&P LSTA Leveraged Loan Index here.