Senior loans, the secured counterpart to high yield bonds, had returned 0.59% up to April 19, 2015 and 2.45% YTD as measured by the S&P/LSTA U.S. Leveraged Loan 100 Index. Unlike high yield, the Energy sector is only 2% of the index, the beginning of year drag of this index had more to do with the amount of issuance and the concern over the lack of covenant protections incorporated in the issuance than Energy prices.
Source: S&P Dow Jones Indices: Data as of 4/17/2015, Senior Loan data as of 4/19/2015
This article was written by Kevin Horan, director, fixed income indices, S&P Dow Jones Indices.
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