Are there tastier options than vanilla? Senior debt is still fundamental to many investors’ private debt portfolios. But, as competition increases, LPs are increasingly hunting for less populated spaces. While there is little evidence of investors falling out of love with the senior secured private debt market, competition for mid-market direct lending opportunities is such…
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…
Contact: Marina Lukatsky marina.lukatsky@spglobal.com
Oil and gas is the top defaulted sector in U.S. CLOs as of January At the end of January 2020, oil & gas, aerospace and defense, and mining were the top defaulted sectors in active US CLOs on a volume basis. Oil and gas had US$1.06bn of loan debt in 642 CLOs, of which US$602m…
Holding on to winners Last month we wrote about the decline in PE holding times, with the median dropping below five years for the first time in almost a decade. These figures represent portfolio companies and not fund durations (longer-dated funds are relatively new and don’t move the needle yet). PEGs are simply turning companies…
Middle market mezzanine activity slumped last year, but has maintained a steady pace since 2013.
Percentage of Loans with Uncapped Synergies & Cost Savings EBITDA Addbacks Contact: Steven Miller