Leveraged Loan Insight & Analysis – 3/26/2018

Primary leveraged yields widen across the board due to rising Libor rate

The increase in Libor rates has boosted yields on institutional term loans this quarter. The average yield, assuming a three-year term to repayment is at 5.42% so far in 1Q18; up from 4Q17’s 5.02%. Driving up the yields is the increase in the 3-month Libor rate, which is currently at 2.3%, up from 1.69% at the close of 2017.