In November, US leveraged loan market performance remained subdued, as the Morningstar LSTA US Leveraged Loan Index posted only a modest gain and secondary prices continued to drift lower. Cyclical sectors underperformed, and a clear risk-off tone persisted, with higher-rated names outperforming. Primary activity also cooled, with some deals withdrawn and terms becoming more lender-friendly, while shrinking refinancing activity slowed repayments. Despite these headwinds, CLO demand remained a bright spot, with BSL CLO issuance rising to its strongest monthly pace of 2025.  Marina Lukatsky of Pitchbook LCD wrote this.