U.S. leveraged loans clock in best quarter since 2010

|About: Blackstone/GSO Strategic Cr... (BGB)|By:, SA News Editor

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.

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