KBRA DLD Default Forecasts for Liquid Credit: 3.25% ($45B) for HY, 4.5% ($65B) for BSL KBRA DLD is forecasting a 3.25% default rate by volume (4% by number) for high yield by year end, and a 4.5% rate for syndicated loans (5.5% by number). That equates to nearly $45 billion of HY volume and puts…

KBRA DLD Default Index: 2023 forecast is 2.5% for sponsored deals KBRA DLD’s 2023 default forecast is 2.5% for sponsor-backed direct lending loans, equating to roughly 30 defaults against the roughly 1,200 sponsored borrowers in the KBRA DLD Default Index. Table 1 The year-to-date (YTD) sponsored rate is 1.2%, which includes 14 defaults—mainly bankruptcies. Searchlight…

KBRA DLD tracks 214 deals in 1Q23 across U.S., Europe KBRA DLD tracked 214 direct lending deals in the first quarter across the U.S. and Europe. Even though Europe’s direct lending universe is much smaller than the U.S., the region’s count didn’t lag by much. Our tally drew 95 deals for Europe versus 119 in…

Jumbo outstandings climb to $118B with Cotiviti’s new record deal Cotiviti’s $5.5 billion credit raises outstanding jumbo loan volume to $118 billion, as tracked by KBRA DLD. That figure includes incremental debt for existing jumbo issuers, defined as those with private loans of $1 billion or greater. The number of known companies with outstanding jumbo…

Lofty yields — 12%— and little supply to pressure unitranche spreads Unitranche yields in the KBRA DLD Private Data portfolio averaged 12% for the 90-day period ended Jan. 31, up from 6.6% a year ago. The current reading is the highest in our two-year, $270 billion library and potentially the highest since the GCC. The…

Benign decline: Volume eases 14% YoY in DLD’s Private Data set KBRA DLD tracked $3.8 billion in new-issue volume last month across sponsored, U.S. borrowers. Managers said new business felt slower than usual for the start of the year, and indeed, the tally in our Private Data set was down 14% from January 2022. The…