Monthly European Loan Market Update - July 2019

Monthly insights and updates from the Invesco Fixed Income team

Jul 12, 2019 | Invesco Fixed Income

The Credit Suisse Western European Leveraged Loan Index (“CS WELLI”) returned 0.13% in June, comprised of principal return of -0.20% and interest return of +0.33%.1 Year-to-date (“YTD”) returns are 3.11%.1

Continued mediocre Eurozone economic data led to a shift in ECB rhetoric – swinging the pendulum from QT back to (likely) QE. While questions remain surrounding the timing and tools that will be used, markets reacted positively to the new tone: German Bunds hit all-time lows. However, the European loan market, characterized by a stable balance of supply and demand, resulted in a “steady as it goes” theme of returns in the month. Global tensions remain between the US and China over tariff/trade, between the US and Iran with the expected volatility across the oil complex, and regarding US Federal Reserve monetary policy.

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^1 Credit Suisse Western European Leveraged Loan Index (CS WELLI) in EUR as of June 30, 2019.
 

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