The de-escalation from the higher-than-expected tariffs announced on April 2nd – “Liberation Day”- continued into May leading to a resurgence across capital markets. After declining for three straight months, secondary prices for broadly syndicated loans (BSL) jumped 93 basis points in May to 96.7 – the largest monthly gain since December 2023. These gains translated to a return of 1.55% for the month, according to the Morningstar LSTA Leveraged Loan Index (LLI).