The payment default rates of the Morningstar LSTA US Leveraged Loan Index (LLI) declined to 0.87% (by amount) and 1.17% (by count) in August as two companies rolled off the trailing 12-month window. There were two liability management exercises (LMEs) and one payment default during the month. The dual-track default rate (by count) at month-end was 2.88%, essentially unchanged from the 2.87% reading in July.
The distress ratio eased 39 bps to 6.50% on a broad rebound in bids, though distress remains elevated.
As of Aug. 31, the trailing 12-month default rates of the LLI were as follows:
Payment default rate by amount: 0.87%, down from 0.93% in July
Payment default rate by issuer count: 1.17%, down from 1.25% in July
#july #count #rate #rates
The distress ratio eased 39 bps to 6.50% on a broad rebound in bids, though distress remains elevated.
As of Aug. 31, the trailing 12-month default rates of the LLI were as follows:
Payment default rate by amount: 0.87%, down from 0.93% in July
Payment default rate by issuer count: 1.17%, down from 1.25% in July
#july #count #rate #rates
10 days ago
