Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the *Cliffwater Direct Lending Index (CDLI) current yield, which is based on the investment income of the underlying assets held by public and private BDCs. BDCs invest in middle market companies, and the Index…
Private debt grows as capital flows in Private debt has emerged over the past decade as an attractive asset class for investors and form of finance for companies. Private debt has higher yields than comparable instruments, a shorter duration than some other alternative asset classes, while the prevalence of floating rate structures gives investors some…
Testing times for leveraged loans Market conditions have been described as a ‘perfect storm’ as various pressures increase. Is something about to give in the financial markets? And if so, how would that affect leveraged loans? It would not be a stretch to be concerned about such a possibility, given recent geopolitical and capital markets…
Contact: Marina Lukatskymarina.lukatsky@spglobal.com
Last week we took our eight-year daughter to the library to stock up on books from her reading list. (The “Ready, Freddy!” series, in case you’re curious.) On the way out, a mother and her two young sons preceded us. The boys ran into the automatic revolving door. “No,” she said. “Come this way,” opening […]
The middle market ratio dropped in 2020 Download PitchBook’s Report here. Another tidbit in PitchBook’s 2021 Annual Middle Market Report is the chart above. It reflects the proportion of all US PE deal flow being done in the middle market. For most of the decade, the middle market’s share of overall deal flow hovered just above…
More deals see pricing flex wide of talk since February Source: Debtwire Par, Markit Primary market pricing has jumped to its highest point since the coronavirus (COVID-19) pandemic sent shockwaves through the financial system in 2020, as inflation risks and ongoing uncertainty stemming from the war in Ukraine demand higher yields for investors willing to…
1Q22 Leveraged volume down 55% amid inflation fears and Ukraine war The combination of SOFR rollout, inflationary pressures, labor and supply chain issues and the war in Ukraine (as well as its impact on commodities) all tinged the US leveraged loan market in 1Q22, contributing to lower volumes and increasing spreads. At US$186.3bn, 1Q22 leveraged…
Source: LevFin Insights Source: LevFin Insights Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenberg robert.polenberg@levfininsights.com