A recent report from KBRA’s research team (“Private Credit: 2024 Maturity Wall is a Myth”) outlined three conditions that need to exist for looming maturities “to present a challenge to the industry.” First, there have to be a “significant” number of maturities coming up. Second, if lenders have to take losses as a result of…
As we navigate slowing economic growth, volatility, and geopolitical shocks, it is even more critical to identify the attributes of winners and losers. Embracing scale, cultivating diverse capabilities, leading with true sourcing advantages, exercising valuation discipline, and maintaining conservative and flexible balance sheet structures – will prove to be a brighter path for success in […]
Launched Volume Source: LevFin Insights New-issue Yields Source: LevFin Insights Weekly Fund Flows Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenbergrobert.polenberg@levfininsights.com
Fitch’s Privately Monitored Middle Market Portfolio Overview, 4Q23 In the charts above, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers. Fitch estimates median EBITDA leverage of 6.0x for 2023 and expects the…
US$188bn or 53% of current ABL outstanding commitments are to mature between 2024 and 2026 US asset based loan lenders supported over US$149bn of issuance in 2023, the second highest annual total on record and over 20% of total leveraged loan volume for the year. The numbers provided an incomplete view of the 2023 ABL…
TTM Default Volume, Count (Past performance is no guarantee of future results.) Contact: Eric Rosenthaleric.rosenthal@kbra.com
There are a few things about leveraged loans that create anxiety among those less familiar with the workings of that market. One is systemic risk. The other is leverage itself (“risky loans!”). Banks underwriting loans and getting stuck holding them was a concern before the GFC. Since then, regulators have helped shift loans to private…
Less than 20% of institutional leveraged loans come due in the next three years. Source: PitchBook LCD, Morningstar LSTA US Leveraged Loan Index(Past performance is no guarantee of future results.)
Share of New-Issue Institutional Loans with a Pick-Your-Poison Provision by Quarter, PE-Backed vs. All (Past performance is no guarantee of future results.) Contact: Steven Miller smiller@covenantreview.com