Morningstar LSTA Leveraged Loan Index Analysis (May 2025)

The US leveraged loan market posted a strong comeback in May, rising 1.55% — its best monthly return in 17 months — as prices rebounded and risk appetite resumed, supported by easing trade tensions and improving consumer sentiment. On the new-issue front, activity showed signs of recovery, though year-to-date volume remains 24% below the pace set in 2024.  Marina Lukatsky of Pitchbook LCD wrote this.

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