News

Source: LPC Collateral

As the default environment becomes increasingly benign, the total volume of defaulted loans in active US CLOs has continued to tick down, with US$3.18bn at the end of May, down from US$3.7bn in March and US$3.2bn at the end of April. The top sectors by volume are Oil and Gas (US$790.2bn, up from US$714.9bn month over month), Healthcare (US$508.8bn, down from US$516.7bn month over month) and Retail and Supermarkets (US$323.7bn, down from US$337.2bn month over month), together representing 46% of all defaulted loans in CLOs. The top loans are Seadrill Ltd Term Loan B (Oil and Gas), with US$227.5bn in volume, down slightly from US$239.4m month over month, CCS Medical 1st Lien TL (Healthcare), with US$121.4m, down from US$126.7m, and Ascena Retail Group Inc (Retail and Supermarkets), with US$199.6m held, down from US$207.5m . The trailing 12-month institutional loan default rate is 2.4%, according to Fitch, and could decline to 1.5% in 2021, a 10-year low.

by Elizabeth Han