Derisking remains key focus for loan issuers and investors alike Source: Debtwire There has been a striking 70% year-on-year decrease in new money institutional activity in the loan market following a continued lack of supply from M&A auctions processes. In its place, refinancing has taken center stage, propping up issuance at over 80% of the…
Source: VanEck BDC Income ETF, 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 (currently at 10.6%) that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below…
Likely-to-distress scores highlight struggling industries Source: Debtwire Out of a universe of more than 12,000 leveraged US companies, 180 are in the stressed/distressed lifecycle categories – which receive Debtwire’s likely-to-distress (LTD) scores of 50 to 99. Another 600 are in ongoing restructuring – or have an LTD score of 100. The transportation sector has eight…
Source: VanEck BDC Income ETF, 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 that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below investment grade…
Source: VanEck BDC Income ETF, 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 that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that tend to be below investment grade…
Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield and US Bureau of Labor Statistics The red line in the chart is the current dividend yield of the *VanEck BDC Income ETF that tracks the overall performance of publicly traded business development companies (BDCs, lenders to privately held middle-market businesses that…
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…