The US leveraged loan market was jolted by President Trump's April 2 announcement of sweeping tariffs on goods from a range of countries, triggering the sharpest spike in volatility since the Federal Reserve began raising rates in March 2022. As a result, the new-issue market virtually shut down during the month. Loan returns, after falling heavily early in the month, have scratched back into positive territory for the year, but the 0.43% gain in 2025 is one of the weakest for the first four months of any year on record. On a more encouraging note, a few new deals are starting to emerge, but investor caution remains high, with market technicals continuing to favor lenders.  Marina Lukatsky of Pitchbook LCD wrote this.