Market Review and Outlook 3Q20 - Leveraged Finance
Field of Yields Meets Shifting Winds
The high yield market delivered 437 bps of excess return, accounting for most of the 4.60% total return on the quarter. Lower quality CCCs were the outperformer again, earning 713 bps of excess, well ahead of the 399 bps of excess the higher quality Ba/B sleeve garnered for Q3. The leveraged loan market nearly matched that high yield total return, earning 4.13% in total return terms.