10 Jun Voya Senior Loan Group – ‘Talking Points’ – Clipping Along (includes May in Review)
Voya Senior Loan ‘Talking Points’ is a weekly publication from the Voya Senior Loan Team Heads, which provides key insights and results in the Senior Loan marketplace.
Clipping Along
Despite strong market demand, an increase in primary market activity kept index returns in check over the last week. The index was flat with a gain of 0.03%, based solely on interest carry, as the average bid slipped 3 basis points to end the week at 98.30. Returns by ratings cohorts were mixed, with no standouts for the week as bid prices in most cases have run out of room to advance.[[loan market moved up in the first week of April, as the index returned 0.21%, and the average bid for loans increased by 12 bps to 98.28.
May in Review
The index returned 0.37% in May, bringing the number of consecutive months of positive performance for the asset class to 15. With the upside for market values reaching its apex, May’s return reflects interest carry only, as the market value return of the Index was -0.03% for the month. In 2016, the average monthly market value return was 40 bps.
Despite two defaults in the Index during the month, the Index’s default rate by amount outstanding decreased to 1.29% by month’s end.