Default Outlook for Middle Market Fitch recorded eight defaults in our Private Monitored Rating (PMR) portfolio in 2022, down from the pandemic-affected years of 2020 and 2021 when we recorded 23 and 18 respectively. YTD defaults through June 2023 total seven, one short of the total in 2022 and ahead of full-year 2018 and 2019…
KBRA DLD Default Index: 2023 forecast is 2.5% for sponsored deals KBRA DLD’s 2023 default forecast is 2.5% for sponsor-backed direct lending loans, equating to roughly 30 defaults against the roughly 1,200 sponsored borrowers in the KBRA DLD Default Index. Table 1 The year-to-date (YTD) sponsored rate is 1.2%, which includes 14 defaults—mainly bankruptcies. Searchlight…
Are the storm clouds receding? Private debt may be in the process of demonstrating its resilience in the face of the latest challenges. One thing that studies consistently show – including our own Perspectives survey, see chart above – is that investors are still scrambling to access private debt. Tough times we may be living…
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
Both veterans and newcomers to the asset class are familiar with the basics of private debt benefits. Thanks to its premium yield over liquid credit and consistent returns across economic, rate, and market cycles, investors have moved briskly into non-traded credit since the GFC… ▶︎ Read July 3 2023 newsletter: here ▶︎ Chart of the […]
Rating Trend for Middle Market Issuers Following a modestly positive 2021 in which upgrades in Fitch’s Private Monitored Rating portfolio outpaced downgrades at a rate of around 1.2x, downgrades outpaced upgrades in 2022 at a 1.8x rate as inflation crimped earnings. Downgrades continued to outpace upgrades in 1Q23, with around two downgrades for every upgrade…
A welcome bump in exits Download PitchBook’s Report here. Exit activity rose in Q2 and stopped a four-quarter slide, according to PitchBook’s just-released US PE Breakdown. It wasn’t exactly a resurgence, but was welcome news nonetheless. Exits came to a standstill in Q1, registering just $52.3 billion in total…. Subscribe to Read MoreAlready a member? Log
It’s been a while since we felt the need to reiterate the case for junior capital. Back in December 2015 the senior debt market was in full swing recovery from the Great Recession. Interest rates were at rock-bottom lows, and senior spreads were near their post-GFC tights. Unitranche financings were growing in popularity and size…
2022 saw the second highest level of mezzanine fundraising of the past decade.