Supply-demand dynamics – too much cash and too few deals – have pushed second-lien spreads down since the credit crisis. Average Spread of Middle Market Second-Lien Loans Source: S&P Capital IQ… Subscribe to Read MoreAlready a member? Log in here...
Oil price induced volatility pushed up yields on both first and second-lien term loans last year, though availability of the latter declined…. Subscribe to Read MoreAlready a member? Log in here...
Quarterly issuance of second-lien loans peaked in the second quarter of 2014 and has declined steadily due to market conditions. Source: S&P Capital IQ… Subscribe to Read MoreAlready a member? Log in here...
The stricter regulatory environment caused lenders to scale back debt multiples for all leveraged loans at the close of last year. Source: Thomson Reuters LPC… Subscribe to Read MoreAlready a member? Log in here...
Despite a buoyant economy and favorable interest rate environment, the share of criticized bank loans has not declined…. Subscribe to Read MoreAlready a member? Log in here...
With no compelling reason to close deals by year-end, new loan volume has declined every month since June…. Subscribe to Read MoreAlready a member? Log in here...
Regulators are zeroing in on high leverage and weak structures as major leveraged loan risks. Sources: The Fed, FDIC, OCC (Shared National Credits Program (2014 Leveraged Loan Supplement)… Subscribe to Read MoreAlready a member? Log in here...
Cash has exited retail loan funds for months, as investors worry rates will not rise anytime soon. Source: Lipper FMI… Subscribe to Read MoreAlready a member? Log in here...
Reported cash flow growth from publicly filing leveraged loan issuers is improving, but off from immediate post-crisis period…. Subscribe to Read MoreAlready a member? Log in here...
As a pure yield matter, the average BDC has been a significant better play than single-B high yield bonds, with that spread widening…. Subscribe to Read MoreAlready a member? Log in here...