LBO deal flow drops sharply in 2020; fewer large transactions hits new money loan supply Source: Debtwire Par As we approach the end of 2020, LBO financings have helped boost loan supply this quarter, with syndicated institutional loans backing buyouts climbing to USD 28.7bn, a sharp jump from the USD 8.9bn recorded in 3Q20. Despite…
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 loan issuance slips in November, new money share increases Source: Debtwire Par Institutional loan issuance dropped off in November, recording just USD 25.4bn this month, down 56% from the October figure. The month got off to a slow start thanks to uncertainty surrounding the US presidential election, registering just USD 5.8bn through 9 November,…
Vaccine hope and election results impact the secondary markets Source: Debtwire Par Leveraged loan and high yield bond secondary markets saw an uptick in volatility ahead of the US General Election, with term loans posting a 61bps decline in weighted average bids in the 26 October to 2 November time frame and high yield bonds…
Leverage multiples on LBO deals rebounds in 4Q20 Source: Debtwire Par Leveraged loan activity backing LBOs has picked up this quarter, following subdued deal flow in 2Q20 and 3Q20 due to the COVID-19 pandemic. Fourth quarter syndicated leveraged loan issuance backing buyouts is currently at USD 17bn, already topping volumes in the prior two quarters….
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…
Dividend financings see a resurgence within opportunistic loan market Source: Debtwire Par Following several months defined by a lack of new loan supply, opportunistic deals have begun to flood the market as borrowers and sponsors alike capitalize on investor appetite for paper. Since returning to the market in July, dividend recapitalization transactions have steadily gained…
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 loan market sees a pick-up in M&A-related deals and dividend recaps Source: Debtwire Par Following on from September, the month of October is seeing a steady stream of leveraged loan deals, comprised of M&A-related transactions, dividend recaps and refinancings. On a positive note for lenders, M&A-related institutional loan deal flow has topped USD 9bn…
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…