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Weekly Market Summary
Dec 1 to Dec 5, 2025
Extra Credit*
- Restructuring activity among companies in the Morningstar LSTA US Leveraged Loan Index in November included one bankruptcy filing and one liability management exercise (LME), sending the trailing 12-month default calculation lower for a second consecutive month. As of Nov. 30, the trailing 12-month default rates of the Morningstar LSTA US Leveraged Loan Index were as follows: Payment default rate by amount: 1.25%; Payment default rate by issuer count: 1.26%; Dual-track default rate by issuer count: 3.68%
- The trailing-12-month count of issuers in the Morningstar LSTA US Leveraged Loan Index conducting LME transactions fell to 27 in November, from 30 in October. At the end of 2021, before the Federal Reserve kick-started its rate-hiking cycle, the trailing-12-month count for LMEs was just six.
- At its peak in December 2024, the last twelve month count hit 38. Despite slowing down, liability management exercises and distressed exchanges have continued to outpace payment defaults and bankruptcies each month on a rolling 12-month basis since January 2024, reversing the historical norm.
Pitchbook, as of 12/4/25.
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 Credit Suisse Leverage 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.
Any discussion of individual companies is not intended as recommendation to buy, hold or sell securities issued by those companies. Aristotle Fund holdings can be found on the fund pages linked above.
Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.
Investing involves risk. Principal loss is possible.
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