U.S. Loan Prices Sink to 10-Month Low Amid Geopolitical Turmoil
- S&P/LSTA Index falls to 97.58, lowest level since April 2
- Leveraged loans show stress as markets wobble on Ukraine
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U.S. leveraged loans have been a relatively safe haven in corporate credit for months, but prices have plunged as strain emanating from the conflict in Ukraine continues to show in the market.
A key price index fell 0.46% to 97.58 Thursday, its lowest level since April 2, as Russian President Vladimir Putin’s decision to order a military attack on Ukraine weighed on a multitude of asset classes. The index move represents the biggest single-day drop on a percentage basis since June 2020.