Concerns over the health of the economy pushed returns on broadly syndicated loans (BSL) lower to 0.45% in August, according to the Morningstar LSTA Leveraged Loan Index (LLI), amid a pull back from the April-to-July period, when loan prices rallied 3 points after falling sharply on April 2nd on the administration’s tariff announcement. In sum, the LLI’s market value component of return was negative 0.21% in August – the first decline in four months – with 0.66% of interest income keeping returns positive. Year to date, 5.4% of interest income has offset market value losses of 1.15% for a total return of 4.17%.