Syndicated middle market loan volume climbs in 2Q22 but lags year-ago period Syndicated middle market issuance picked up in 2Q22 despite increased market volatility in May and June. Middle market lending climbed to US$48bn in 2Q22 from US$33bn in 1Q22 but was below the US$58bn posted in the same quarter last year. On a year-to-date…
First lien loan pricing spikes in June in tandem with secondary market collapse Source: Markit, BofA US HY Index To open the year, loans were bid at an average price of 97.78, with approximately 20% of loans bid in the par-plus range. As inflation numbers started coming in hot, and as the war in Ukraine…
Private debt dry powder at record levels Private debt dry powder has climbed to record highs in recent years. Investors committed capital during the pandemic as a rush of opportunities in the distressed debt space was expected. Indeed, 2021 saw the highest annual aggregate capital raised in private debt on record, at $214bn…. Subscribe to
Fear recedes over fund facilities Initial wariness over subscription finance has given way to acceptance – at least when it comes to brand-name GPs. “Leverage is a sensitive topic for LPs,” says Carolina Espinal, managing director at HarbourVest Partners. But while skepticism was rife in the early days of the subscription finance market, when limited…
Percentage of Loans that Cleared with the Least Protective Documentation Scores (5/5+/4-) (Past performance is no guarantee of future results.) Contact: Steven Miller
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
The spike in growth funds Download PitchBook’s Report here. One of the many consequences of COVID was a shift in strategies among investors. The chart above is from PitchBook’s Quantitative Perspectives: US PE Enters a New Regime. It shows a relative spike in growth funds starting in mid-2021, relative to all fundraising done that year. The…
Many direct lenders only finance businesses backed by private equity sponsors. While non-sponsored strategies have benefits, the presence of an owner with its own track record, industry experience, and deal sourcing prowess, gives relationship lenders distinct advantages… ▶︎ Read June 27 2022 newsletter: here ▶︎ Chart of the Week: here (by Lincoln International, S&P Capital […]
1H22 Leveraged volume down 31%; HY bonds off 75%, institutional loans down 61% The US leveraged market dramatically slowed in 2Q22, completing just over US$292bn of loan and high yield bond volume to bring totals for the first half of the year to less than US$480bn, down 31% year over year. The lack of macro…
“Broadly syndicated loans are liquid, so have high volatility that exaggerates credit deterioration,” one market observer told us recently. “The middle market,” he continued, “is illiquid, so has low volatility which can mask credit deterioration.” How do PMs in these strategies manage through market volatility and maintain credit quality? Large cap loan buyers act like…