New-issue spread and yield to maturity of loans backing LBOs by quarter Download PitchBook’s Report here. Borrowers and sponsors, in turn, increasingly appreciated private credit’s certainty of execution, flexibility, willingness to offer PIK options and delayed-draw term loans, and bespoke terms that facilitated navigating downturns…. Subscribe to Read MoreAlready a member? Log in here...
Loan prices plummet in secondary market amid tariff-fueled volatility Secondary market bids on US leveraged loans have tumble 329 bps from their January high to an average bid of 94.41 on April 9th, the lowest level seen since July 2023, according to the Morningstar LSTA US Leveraged Loan Index…. Subscribe to Read MoreAlready a member?
Growth at Perpetual BDCs Drives an Increase in Competition Click here to learn more. U.S. perpetual non-traded business development companies (BDCs) have grown rapidly since the launch of Blackstone Private Credit Fund in January 2021…. Subscribe to Read MoreAlready a member? Log in here...
Institutional loan repricings decline alongside secondary loans in 1Q25 The secondary loan market had a deceivingly challenged quarter. Par-plus loans accounted for more than 53% of the market at the start of the year, peaked above 56% in mid-January, then ended 1Q25 at a three-month low of 12%…. Subscribe to Read MoreAlready a member? Log
Fundraising bounces back The early signs in 2025 are positive as capital raisers enjoyed a prolific three months and distressed strategies increased market share. The first quarter of the year was the strongest Q1 on record for private credit fundraising with a huge $74.1 billion raised according to PDI data…. Subscribe to Read MoreAlready a
Share of private debt capital raised by strategy Download PitchBook’s Report here. Direct lending led as the top fundraising substrategy within private debt, accounting for 60.7% of the capital raised in 2024…. Subscribe to Read MoreAlready a member? Log in here...
New money financing remains muted as M&A off to slow start in 2025 At just $35.9b or 11% of volume in Q1 2025, new money financing remains sluggish amid record levels of issuance. At $339.2b, first quarter issuance was among the busiest since Bloomberg began tracking the data in 2013, however that did not translate…
Tight Spreads, Rising Non-Accruals to Further Weaken BDC Earnings Click here to learn more. Continued spread pressure and additional non-accruals will likely weaken earnings and dividend coverage for business development companies (BDCs)…. Subscribe to Read MoreAlready a member? Log in here...
Stresses and strains may trigger a distress revival Distressed debt has adapted to more benign market conditions but may revert to a ‘pure’ form as pressure on borrowers grows. Distressed debt isn’t what it used to be. In the wake of the global financial crisis, there was a once-in-a-lifetime chance to invest in rebuilding a…
Evolution of leveraged loans by vintage shows notable reductions in near-term maturity walls Leveraged loan issuers have continued to proactively manage their capital structures via refinancings and extensions, driving significant reductions in near-term maturity walls over the past 15 months…. Subscribe to Read MoreAlready a member? Log in here...