The historic return profile of the Credit Suisse Leveraged Loan Index1 changed dramatically following the 2008 financial crisis. Pre-crisis, returns were relatively stable and characterized by low volatility. By the end of 2008, volatility had spiked dramatically. However, it is important to note that the volatility experienced in mid 2008 to early 2009 was due largely to a technology-driven sell-off, caused by excessive new issuances and forced selling from leveraged vehicles with market-value triggers. Those factors, particularly with leveraged vehicles, have greatly diminished since then. At the same time, the market participants have evolved considerably in the last several years
