Primary leveraged yields decline slightly in 3Q19

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Primary yields have tightened slightly across rating levels so far in 3Q19. The main driver behind the decline in yields are falling Libor rates. At its current level of 2.13%, the 3-month Libor rate has dropped 19bp from 2.32% at the end of 2Q19. For single B issuers, the average yield, assuming a three-year term to repayment on first-lien institutional term loans is 6.89%, 16bp below their 2Q19 level.