Demand sends loan prices higher
in frothy secondary market
Source: Debtwire Par, Markit
Demand for leveraged loans has remained strong in April, driving the average bid on first lien institutional term loans up to a recent high of 97.14 before retreating to 96.88 by 20 April. Of the most widely quoted loans, 62% have moved higher this month compared to just 35% retreating. Further illustrating the recovery in loan secondary prices, over 81% of loans currently trade at 98 or higher, with 13% bid above par.