If or when a credit event does occur with a loan, the recovery rates on bank loans are 86%, much higher than the recovery rates secured, unsecured or subordinated bonds.

The issuers in the S&P/LSTA U.S. Leveraged Loan 100 Index are the same issuers in the S&P U.S. High Yield Corporate Bond Index. Currently the S&P/LSTA U.S. Leveraged Loan 100 Index has returned 0.12% MTD and 2.20% YTD while theS&P U.S. High Yield Corporate Bond Index has returned -0.20% MTD and 4.78% YTD.

This article was written by Kevin Horan, director, fixed income indices, S&P Dow Jones Indices.

© S&P Dow Jones Indices LLC 2013. Indexology® is a trademark of S&P Dow Jones Indices LLC (SPDJI). S&P® is a trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a trademark of Dow Jones Trademark Holdings LLC, and those marks have been licensed to SPDJI. This material is reproduced with the prior written consent of SPDJI. For more information on SPDJI, visit http://www.spdji.com

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