Primary yields widen in 3Q18 to levels not seen in over two years

Average primary yields on first-lien institutional term loans in 3Q18 are at their highest levels since 1Q16. At 6.44%, the average yield assuming a three-year term to repayment on first-lien institutional term loans is 67bp higher than 2Q18’s average. Unlike prior quarters, the increase in yields this quarter is due to higher spreads and wider OIDs and not from the increase in