US secondary market rallies to begin the year

Chart

The US secondary loan market has rallied to start the year. The LPC 100 cohort of the largest, most widely quoted loans is up 142bp so far in January to 92.7, and middle market loans are 34bp higher to the 92.8 context. Volatility left a vastly altered loan market in 2022. In the US, loans were sharply up and down at times but mostly down, to end the year 7 points lower, with the share of the market bid at par or higher dwindling to just 1%.