Secondary market levels continue to trend higher

Prior to the pandemic, the average bid on the North America Overall-Market cohort of loans was in the 97.5 context, with half of loans bid between the 98-<100 level, bids above par made up a 35% share. At its lowest point last year, March 24, the Overall-Market average had collapsed to the 82 range, sending the share of bids marked between the 98-<100 to under 1%.
 
The secondary market has since rebounded swiftly and steadily, with the Overall-Market average increasing to the 97.7 context, as of last Friday, sending the share of loans marked between 98-<100 higher to 64%. On January 20, the par plus share reached 27% share of the market, its highest level post-Covid, but has since declined to 9% share of the market.
 
Bids priced above par declined 18% in the last two months. On January 20, bids between 95-<98 comprised 15% of the market. That number is up to 16%. Meanwhile, the share of loans in distressed territory (bid less than 80) has declined to 2%.

(Past performance is no guarantee of future results.)