Buyout issuance shifts to high yield bonds Source: Debtwire Par Buyout financing diverges between markets Leveraged issuers tapping public syndication for leveraged buyouts have turned to the high yield bond market in recent months, with impressive levels of activity considering the current shortage of new money issuance. LBOs backed by bond issuance already reached the…
Source: VanEck BDC Income ETF and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF (BIZD) that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below…
Source: VanEck BDC Income ETF and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF (BIZD) that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below…
Investors steer clear of riskier assets Source: Debtwire Par Debt issued in the institutional leveraged loan market has shifted back towards the favor of double B facilities over single B rated tranches. So far in 2023, almost 40% of activity has been double B rated, marking the highest percentage in the last five years. The…
Source: VanEck BDC Income ETF and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF (BIZD) that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below…
Defaults are expected to face prolonged rise Source: Debtwire Par Bubbling up: defaults continue year-long rise Default rates have been increasing steadily month-on-month (MoM) from a low in February 2022 of only 0.4% to over 2% of the loan universe as of March 2023. Bond rates have similarly been on the rise over the same…
Source: VanEck BDC Income ETF and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF (BIZD) that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below…
New money issuance drops in 2023 Source: Debtwire Par While overall leveraged loan issuance was down 23% year on year to USD 225bn at the end of the first quarter, refinancing activity gained 35% year-on-year for all loans and 30% for institutional facilities. This reflects the significant lack of M&A activity driving issuance contrasting the…
Source: VanEck BDC Income ETF and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF (BIZD) that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below…
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…