US leveraged loans continued to rally in November, fueled by exceptionally hot demand from CLOs and retail investors, set against very little new issuance. The technical imbalance reignited the repricing wave and further compressed borrowing spreads in the primary market to the lowest levels in years. Although the latest rate cuts have reduced the interest return, loans continue to significantly outperform historical averages while base rates remain elevated.  Marina Lukatsky of Pitchbook LCD wrote this.