.jpg)
Weekly Market Summary
Jul 21 to Jul 25, 2025
Extra Credit*
- Repricing transactions in the leveraged-loan market continue to gather pace as new-issue supply remains relatively sluggish and the secondary market continues to grind higher. So far in July, repricing volume via amendments has swelled to $57.7 billion, the highest monthly mark since January, when there was $138.2 billion.
- On average, borrowers are lowering spreads via repricings by about 43 basis points in July. That is down from 48.5 basis points in the second quarter and 57.5 basis points in the first quarter. That said, the initial spread of deals repriced in July is also lower at SOFR +339, compared to around SOFR +350 in the first half of 2025.
- This cohort consists of currently outstanding first-lien term loans that 1) are outside of their prepay protection period, which is typically six months; 2) have a bid price of par or higher; and 3) have a current spread at least 25 basis points higher than the three-month average for new-issue loans with the same corporate credit rating by S&P Global.
- A contributing factor to increased repricing activity is typically a slower new issue market, and so far, July has not been a breakout month. Total new supply (excluding repricings) stands at $22.7 billion month-to-date, on pace with the full-month total of $44.7 billion in June and projecting to fall short of the $64.4 billion in January, this year’s busiest month.
As of 7/21/25.
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.
Foreside Financial Services, LLC, distributor.