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…
Spread differential between a unitranche and first-lien loan remains near all-time tights The middle market sponsored loan arena has kicked off 2020 with a slow start in the syndicated loan market. Refinitiv LPC has only tracked about US$2bn in volume, which trails this time last year of US$3.7bn by 46%. The average first-lien spread on…
Lower Middle Market bustled in January Direct lending deal flow was by far the busiest that Direct Lending Deals has tracked since launching last September. The tally — driven mainly by lower middle market issuers— outpaced December by 43%, and by 28% over October, the second busiest month…. Subscribe to Read MoreAlready a member? Log
Source: SPP Capital Partners Contact: Stefan Shaffer stefan@sppcapital.com
Cash flow positive Download PitchBook’s Report here. Net cash flows have been hugely positive for private debt funds recently. PitchBook’s Global Private Debt Report showed a record $24.6 billion funneled back to LPs in 2018, alongside a strong start to 2019 numbers as the data slowly rolls in. Private debt treaded water in terms of net…
Private Debt Performance Lags Other Asset Classes Private debt funds have experienced the second-lowest spread of returns over the 2007-2016 vintage period among all private capital asset classes, surpassing only natural resources funds. However, private debt also has the lowest risk factor, with the smallest standard deviation in net IRRs of any asset class…. Subscribe
We continue our special series this week with: Myth #2: “Private credit is the next market bubble.” It’s a myth that’s applied regularly to leverage loans. The universe of broadly syndicated loans is as large as that of high-yield bonds, so that must be a bad thing. But growth in loans is a classic result […]