U.S. leveraged loans posted returns of ~4% in Q1, its best quarter since 2010, even though March's performance lost some luster, Bloomberg reports.
The asset class trailed both investment-grade and high-yield bonds during the quarter.
Most of the quarter's gains came in January as leveraged loans rebounded from a steep decline in December. Then gains moderated as the Fed's increasingly dovish tone turned investors away from floating-rate leveraged loans, which are used as a hedge against rising rates.
Subscribe for full text news in your inbox