The Morningstar LSTA US Leveraged Loan Index default rate finished 1Q at 1.44%, compared with the historical average of 3%.
For 1Q, Nomura Floating Rate Fund Institutional Class shares outperformed the Fund's benchmark, the Morningstar LSTA US Leveraged Loan Index.
Risks to loan-market issuers remain as AI-related concerns impact credits across sectors and industries.
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Market review
The Morningstar LSTA US Leveraged Loan Index declined -0.55% in 1Q26. Increasing concerns about the impact on artificial intelligence (AI) across credits, sectors, and industries, as well as heightened geopolitical tensions tied to the Iran conflict and its impact on oil
