.jpg)
Weekly Market Summary
Jun 23 to Jun 27, 2025
Extra Credit*
- Long-end high-yield debt (> 25y maturity) is virtually nonexistent. Nearly 70% of HY debt can be found in the two- to six-year maturity bucket, and only 1% has more than 11 years. Fallen angels are the primary source of long-duration high-yield bonds, 40% of them have 8 year+ of maturity.
- Amid headwinds from trade tariffs and suppressed dealmaking activity, the private credit market is still finding ways to deploy capital to finance large LBOs. According to LCD’s latest Private Credit Monitor report, although the number of buyout deals has declined over the past three months, estimated direct lending volume supporting buyout activity rose to roughly $23 billion through May 31, the highest level since Q2 2022.
- The tariff-driven volatility of April 2025 served as a true stress test for credit markets, and they passed. In April 2025, IG Portfolio Trading volumes surged past $100bn, while HY Portfolio Trading volumes hit $43bn, both marking all-time highs. The spike was especially pronounced in HY, where the PT market share jumped from 16% in March to 20% in April 2025, narrowing the gap with the IG PT market for the first time. Corporate bond ETFs also hit record high volumes, with IG ETF volumes nearing $130bn in April and HY ETFs soaring to $180bn, marking historical highs in both segments.
As of 6/17/25.
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.