US leveraged loans posted a steady if unspectacular month in May, with the Morningstar LSTA US Leveraged Loan Index gaining 0.51%. Beneath the surface, the market's defining tension deepened: technicals remained firmly supportive, with a surging repricing wave and recovering CLO issuance producing a sizable supply shortage, while secondary prices stalled and the AI-driven divide between Software and the rest of the market widened to historic extremes. Marina Lukatsky of Pitchbook LCD wrote this.