Chart of the Week: Spreads Move, Premium Persists
The illiquidity premium for middle market loans is a staple regardless of how spreads change.
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Leveraged Loan Insight & Analysis – 7/11/2022
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…
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Debtwire Middle-Market – 7/11/2022
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…
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Private Debt Intelligence – 7/11/2022
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
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PDI Picks – 7/11/2022
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…
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Covenant Trends – 7/11/2022
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
Loan Stats at a Glance – 7/11/2022
Contact: Marina Lukatskymarina.lukatsky@pitchbook.com
The Pulse of Private Equity – 7/4/2022
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…
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Portfolio Construction: How PE Help
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 […]