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.
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