3Q20 MM sponsored loan issuance picks up from 2Q20’s low, but still quite anemic

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Sponsor-backed middle market volume showed a pick up in 3Q20 to US$5.6bn, up 120% from 2Q20’s post credit crisis low. But volume was still quite dire and over 62% behind 3Q19’s level. While pricing has been tightening dramatically month after month, refinancing activity remained few and far between with most loans trading below par and spreads still elevated relative to pre-COVID levels.