Chart of the Week – Tale of Two Markets
The volume of institutional leveraged loans in the US is over six times as large as that of Europe on average over the past fifteen years. Source: S&P Capital IQ; Annual institutional loan volume in US dollars
Chart of the Week
Chart of the Week – Docket Watch
The pipeline for institutional middle market loans is off to a slower start compared to last year, as sellers take a “wait-and-see” attitude on deal appetite. Source: Thomson Reuters LPC
Chart of the Week – Price Talk
Purchase price multiples continue to march higher for middle market buyouts as competition remains keen among private equity buyers. Source: Thomson Reuters LPC
Chart of the Week – Taking the Plunge
Investor confidence in publicly traded business development companies has eroded valuations markedly. Source: The Daily Shot
Chart of the Week – Down Shift
Leverage declined modestly, though almost two thirds of 4Q deals were 6x total leverage or higher. US Middle Market Leverage Multiples on Institutional Deals Source: Thomson Reuters LPC
Chart of the Week – Assembly Line
CLO formation last year totaled $93 billion, off 2014’s record $124 billion, as managers wrestle with risk retention. US CLO Activity Source: S&P LCD
Chart of the Week – Off Year
Loan issuance of just under $30 billion for middle market leveraged transactions was at its lowest point since 2010. Annual Middle Market Institutional Loan Volume Source: Thomson Reuters LPC
Chart of the Week – Down Time
Leverage for all US corporate issuers is headed to levels where previous default cycles began. Source: The Daily Shot, Bloomberg Finance LP, Datastream, Deutsche Bank
Chart of the Week – Flex Time
Since August’s market volatility, more post-launch pricing changes have been investor-friendly.
Chart of the Week – Stall Speed
With risk retention rules on the horizon, monthly new CLO issuance has slowed considerably.