The US leveraged loan rally ran out of steam in June, as tech-driven weakness resurfaced across the market. The Morningstar LSTA US Leveraged Loan Index eked out a gain of just 0.08%, its weakest month since February, as a renewed selloff in software loans, deteriorating investor sentiment and a softer technical backdrop weighed on returns. Beneath the surface, the divide between software and the broader market widened further, distressed and stressed cohorts continue to climb, and record extension activity underscored borrowers' urgency to get ahead of the 2028 maturity wall. Marina Lukatsky of Pitchbook LCD wrote this.