North America PD Deal Value Rebounds in 2021 The private debt industry in North America is on track to beat last year’s number of deals and has already outpaced 2020 in aggregate deal value. So far in 2021, the region has seen 339 deals with an aggregate deal value of $105.5bn… Subscribe to Read MoreAlready
Before Covid the persistent view on private credit was too much capital was chasing too few deals. Transaction inflation caused compressed spreads, higher leverage and weakened terms. When Covid hit this balance shifted dramatically in favor of the investor. Deal supply dried up, lenders retreated, and terms strengthened. But within weeks central bank liquidity ended…
Container ships in the US queue are up significantly since the summer.
Flex Trends: Pricing (% of all Flexes that Decrease All-in Spread) and Covenants (% with Zero Doc Score Flex) (Past performance is no guarantee of future results.) Contact: Steven Miller
Europe is also heating up It’s not just the US seeing transaction activity hit the heights. The leveraged buyout market is helping to create a boom in Europe, too. In last week’s edition of Lead Left, we reflected in this column on the “white hot” US deals market. In Europe, it’s a similar story, with…
Contact: Marina Lukatskymarina.lukatsky@spglobal.com
Last spring we were shopping for garage doors. Lumber prices had skyrocketed – almost to the price of gold. So we chose steel. As did everyone else. Wood is now cheaper. And we’re still waiting for our doors. The industry publication Supply Chain Management Review reported that 2021 is on a record pace for factory […]
Unitranches continue to grow in size and scale The size and depth of the direct lending market has grown dramatically in recent years, with mega unitranches increasing in frequency. These larger deals have helped private lenders take market share from the broadly syndicated market and highlighted their growing scale. Back in 2019, there were 13…
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…
