The market continued to tilt in favor of borrowers in July, leading to a record level of activity in the primary market driven by repricings, even as M&A remained elusive. In the secondary market, demand for broadly syndicated loans (BSL) drove prices higher for the third consecutive month, providing a tailwind that increased returns to 0.88% in July, according to the Morningstar LSTA Leveraged Loan Index (LLI). The asset class has returned 3.3% since April’s negative return, with average loan prices up 164 basis points during that time. Year-to-date returns stand at 3.7% with interest income offsetting market value losses.