Distressed percentage accelerates on BDC loans For several years in an asset and yield starved market, BDCs stretched up the risk spectrum in an effort to keep up their lofty dividend yields. As the credit environment becomes tougher this year amid slowing global growth, more cracks are beginning to surface in BDC holdings. So far…
Speaking of long flights [link], news reached us of an overweight passenger punished for traveling in the main cabin. Or more precisely, the passenger’s owner was penalized. Viktor, a 22-pound cat of uncertain breed, was smuggled aboard Aeroflot in Latvia heading to Vladivostok – an eight-hour trip. Knowing his pet was over-the-limit, Mikhail Galin swapped…
First-lien/mezz is the costliest capital structure for sponsors; unitranche is coming down.
Average Unadjusted Leverage Through F&C for M&A-Driven Loan Deals Contact: Steven Miller
Direct Lending Fundraising Recovers Private debt fundraising kept decreasing in 2019, driven by a fall in mezzanine and distressed debt fundraising. However, direct lending continues to represent the largest bulk of fundraising activity, and 2019 has seen a big recover for this strategy. Direct lending fell in 2018 closing 84 funds securing $52bn, after seeing…
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
This week we fearlessly tackle one of the most frequently asked questions in private credit: Namely, where do you draw the line between a #SeniorStretch loan and a #Unitranche? It’s a topic that’s gained increasing traction as issuer leverage has risen steadily, going back well before the financial crisis. Back in the early 2000’s when […]
Contact: Marina Lukatsky marina.lukatsky@spglobal.com
Issuers in leveraged lending today are divided into three categories: the haves, the have-nots, and the wish-they-hads. With about six weeks of business left to the year, the differences between haves and have-nots is growing. In the #BroadlySyndicatedMarket, the combination of triple-C anxiety among CLO managers and cash out-flow worries with retail funds have impelled […]