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4Q 2018 Leveraged Finance Market Review & Outlook

> The high yield market experienced a difficult fourth quarter in an environment in which global economic growth appeared to be slowing. Issuance continued to shrink during the quarter and outflows from mutual funds totaled -$20.2 billion. Fundamentals remained healthy, however, and defaults were low by historical standards.
> Leveraged loans experienced a significant sell-off in the fourth quarter, nearly offsetting the positive performance of the year’s first three quarters. Loan issuance for the year amounted to the second-highest on record, but it dropped off sharply in the fourth quarter as demand from mutual funds turned negative. Demand from CLOs, however, remained strong.

z - Cover Image: Leverage Finance Market Review and Outlook 4Q18