Institutional loan & HY bond default landscape improves dramatically year-over-year Source: Fitch Ratings, Debtwire Par Defaults on institutional loan and high yield bond debt have subsided from elevated levels seen last year during the height of the coronavirus (COVID-19) pandemic, which shuttered many businesses under pressure to service debt agreements. Ending May at just 2.4%,…
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…
Quarterly M&A/LBO share of institutional loan issuance improves in 2Q21 to-date Source: Debtwire Par Institutional loans backing M&A and buyout activity have totalled USD 120.1bn this year to date, improving from just USD 78.7bn at this point last year as the coronavirus pandemic (COVID-19) largely kept the pipeline for buyout and acquisition financings closed. At…
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…
Sectors most impacted by pandemic outperform in the loan secondary market year-to-date Source: Debtwire Par Average bids on term loans have increased modestly this month, landing at 97.13 as of 18 May. Demand for loans has been strong in 2021, with average bids increasing 168bps from the 31 December figure, during which time 77% of…
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…
SBO share of buyout issuance slips Source: Debtwire Par Sponsor-to-sponsor buyouts have been commonplace in the first several months of 2021, accounting for roughly 32% of buyout-related leveraged loan issuance. While buyout activity set records in 1Q21 in terms of both deal value (USD 161bn) and count (485 deals), according to Mergermarket, leveraged loans issued…
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…
Demand sends loan prices higher in frothy secondary market Source: Debtwire Par, Markit Demand for leveraged loans has remained strong in April, driving the average bid on first lien institutional term loans up to a recent high of 97.14 before retreating to 96.88 by 20 April. Of the most widely quoted loans, 62% have moved…
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…