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Weekly Market Summary
Apr 20 to Apr 24, 2026
Extra Credit*
- Loans returned 0.08% on April 15th, according to the Morningstar LSTA US leveraged Loan Index, bringing the current YTD returns to 0.07%. Back on January 28th, the release of several large language model features ignited fears of disintermediation and led to a sharp sell-off in software company stocks, as well as high-yield bonds and loans in the sector. Loans still trail other asset classes on a YTD basis despite the recovery. High-yield bonds have returned 1.21% and high-grade bonds 0.92%.
- Net funding activity among the largest publicly traded Business Development Companies (BDCs) declined in Q4, as lower levels of new investments coincided with an increase in repayments and exits. An LCD analysis of the top 12 BDCs shows that repayments and sales reached roughly $9.4 billion, up from $7.6 billion in Q3 2025 and $8.5 billion in Q4 2024.
- AI is now a common and increasingly detailed topic on earnings calls, with management teams highlighting its potential impact on business models, cost structures, and competitive positioning. However, while the narrative is often positive, the depth, credibility, and material impact of these claims vary significantly across companies. For credit investors, it is becoming more important to separate forward-looking or aspirational commentary from tangible changes, as AI-driven investment and disruption continue to build across sectors.
Reuters and Pitchbook LCD as of 4/22/2026.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Morningstar LSTA US leveraged Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.
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