Leveraged Loan Insight & Analysis – 1/10/2022

US leveraged loan returns advance to 5.2% in 2021, HY bonds gain 5.4%


US leveraged loans wrapped up 2021 by posting a return of 0.78% in the fourth quarter, outpacing both high yield bonds (0.66%) and investment grade bonds (0.17%). In comparison, returns on the S&P500 accelerated to 10.7% in 4Q21, the highest all year.
4Q21 was the most volatile quarter of the year as news of the Omicron variant combined with new guidance from the Federal Reserve roiled markets in the last week of November.