CLO refinancings fail to materialize in challenging market Source: Creditflux, Debtwire Par New CLO (collateralized loan obligation) issuance has held up well amid a backdrop of challenges in the leveraged loan market this year ranging from persistently high levels of inflation, to the ongoing war in Ukraine and rising interest rates. At USD 124.7bn through…
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…
Leveraged borrowers jump at the opportunity to access debt capital amid market upturn Source: Debtwire Par, Markit Investors in the leveraged loan and high-yield bond markets rejoiced following a better-than-expected inflation reading last week that sent equity markets soaring. On Thursday (10 November) the US Bureau of Labor Statistics reported that core inflation slowed to…
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…
Institutional share of leveraged loan issuance falls to new low in 3Q22 Source: Debtwire Par Institutional loan issuance has plummeted to a third of the levels seen last year. During the first nine months of 2022, institutional volume was USD 233.2bn, down 68% from USD 726.9bn in 9M21, and 39% below the USD 384bn seen…
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…
Buyout activity disappoints following historic year Source: Debtwire Par Record leveraged loan and high-yield bond issuance in 2021 supported buyout activity, with loans racking up USD 166.9bn and bonds supporting USD 27.6bn of buyout issuance for the year. However, it’s a different story in 2022, with those figures falling to USD 84.3bn and USD 13.8bn,…
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…
Prohibitive financing costs continue to plague the loan primary market Source: Debtwire Par Institutional leveraged loan issuance has plummeted 68% from levels seen just last year, to USD 233.2bn through September. As the macroeconomic headwinds beleaguering the market have remained persistent – inflation remains sticky, the Federal Reserve is expected to keep on an aggressive…
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…