Senior Loan Talking Points

Voya
By January 13, 2022 08:23

Senior Loan Talking Points

December caped off a good year for the asset class, as the Index returned 0.64% for the month, bringing the full-year return to 5.20%. Following November’s softness, the average Index bid price moved up by 49 bps in the final month of the year, to 98.64, representing a 244 bps gain from the start of 2021. From a ratings perspective, lower quality outperformed higherrated paper in December. CCCs returned 1.08% for the month, as compared to Single-B and BB returns of 0.63% and 0.58%, respectively. Appetite for risk was in full effect during 2021 amidst the broad economic recovery. This led to a persistent risk-on mentality, as total returns for BBs, Bs, and CCCs were 3.12%, 5.22%, and 12.45% over the YTD period, respectively. Sector performance also reflected a tilt toward higher-beta industries and COVID-impacted sectors, while the more defensive sectors generally lagged the Broad Index.

Voya
By January 13, 2022 08:23

SEARCH