Dry July: Jumbo volume deflates

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Private jumbo financings (>=$1B) have the advantage under current market conditions, but deals going forward are expected to trend smaller for the first time since DLD started tracking these credits in September 2019.

There are several issues affecting capacity: 1) managers invested much of last year’s record capital in the first half of 2022; 2) rising rates have killed refinancings, and therefore repayments are no longer available for redeployment, and 3) inflation and recession fears have made fundraising difficult.