Underperforming credits getting hit harder
in the secondary loan market
Source: Debtwire Par, Markit
The leveraged loan market has become more bifurcated, with underperforming credits getting hit harder in the secondary market. Despite the loan default rate remaining low in the 1.5% area, the share of loans priced at less than 90 cents on the dollar in the secondary market has climbed in recent months as investors have become more cautious of riskier or struggling borrowers.