Last week’s June CPI report showed inflation running at 9.1%, higher than May’s number, dashing hopes that consumer prices had peaked. Data drivers were also broad-based, including energy, food and housing, challenging the Fed’s rate hike pace. Would 75 bps be enough, or will the Fed kick it up to a previously unimagined 1% later…
Forward expectations for loan benchmark rates are peaking in early 2023.
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
Broadly syndicated loans are liquid, one investor told us, so they high volatility that exaggerates credit deterioration. The middle market, he said, is illiquid, so has low volatility which can mask credit deterioration… ▶︎ Read July 4 2022 newsletter: here ▶︎ Chart of the Week: here (by Lincoln International, S&P/LCD) (Any “forward-looking” information may include, […]
Source: LevFin Insights Source: LevFin Insights Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenberg robert.polenberg@levfininsights.com
Second quarter numbers Download PitchBook’s Report here. PitchBook’s latest US PE Breakdown is now live and available for free. Q2 2022 was another decline, with $234 billion invested across 2,176 transactions. The dollar figure is 21% lower than the first quarter and 38% lower than Q4 2021. On paper, 2022 is actually off to a healthy…
In our series on portfolio construction [link] we looked at how liquid and illiquid loan managers assemble quality all-weather assets. Because of the contrasting characteristics and behaviors of BSL and middle market, PMs work differently to extract and maintain value. In recent months, thanks to market volatility caused by higher interest rates, toppy inflation, and…
The illiquidity premium for middle market loans is a staple regardless of how spreads change.
