Loan secondary pricing slumps amid Russia-Ukraine tensions
Source: Debtwire Par, Markit
Average bids on term loans in the US secondary market tumbled 156 basis points (bps) since hitting a high of 98.11 in January, as a combination of high inflation and escalating tensions between Russia and Ukraine sent jitters through financial markets. The downturn marks the first significant decline in loan secondary market pricing since the advent of the coronavirus (COVID-19) pandemic sent average bids plummeting 20bps in March 2020. At the same time, the share of loans trading at par or greater plunged to only 2% from 45% in January.