As the first half of the year draws to a close, leveraged loans have returned 5.8%, as measured by the Morningstar U.S. Leveraged Loan index. That compares with 2022's -0.8% return.
Leveraged loan returns rebound
There has been only one month with negative returns this year — May's -0.2%. Leveraged loans have returned 1.6% this month through June 20.
In 2022, 37% of companies that took on a new leverage loan had a debt multiple (debt to earnings before interest, taxes, depreciation and amortization) of at least six times. That's the highest going back to at least 2001.