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…
Source: LevFin Insights Source: LevFin Insights Source: Lipper Contact: Robert Polenberg robert.polenberg@levfininsights.com
After outpacing M&A add-on activity for the past six months, LBOs fell in May, to a 28% share of direct lending loans, as tracked by DLD. Add-ons accounted for 62%, up from 37% in April. Opportunistic refinancings and dividend deals were absent altogether last month…. Subscribe to Read MoreAlready a member? Log in here...
In our just-completed series on high-yield bonds, we concluded that issuer and investor activity has largely been driven by technical factors: near-zero interest rates, the Fed’s support of fallen angels, and skewed-to-worse ratings for leveraged loans. How then should investors be thinking about the illiquid market? Private credit has a different profile than tradable assets. […]
Percentage of Loans with MFN Carveouts Contact: Steven Miller
The Private Debt Market Remains Crowded The private debt market remains crowded amid COVID-19. As at 15th of June there are 485 funds in market seeking a combined $247bn. The number of funds in market is slightly up from the start of the year, but the amount targeted has increased a 22%. At the beginning…
“Time to go to cash,” we announced one night at the dinner table. It was early June. The Dow had nearly climbed back to its February 12 peak. The moment seemed ripe for a personal portfolio move. “What does that mean?” our six-year old daughter asked. “It means Daddy wants to put our money in…
Valuations of middle market private credit are less correlated to other public asset classes.