ESG’s return impact downgraded Investors overall appear to have less faith in ESG’s transformative characteristics in the long term, especially those based in the US. After a period of heightened focus on environmental, social and governance issues, LPs have begun to recalibrate their ESG strategies amid escalating political pushback against such initiatives, particularly in the…
Fitch’s Privately Monitored Middle Market Portfolio Overview, 4Q23 In the charts above, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers. Interest coverage (EBITDA/interest) is estimated to have declined to 1.6x in 2023…
Fitch’s Privately Monitored Middle Market Portfolio Overview, 4Q23 In the charts above, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers. Fitch estimates median EBITDA leverage of 6.0x for 2023 and expects the…
US$188bn or 53% of current ABL outstanding commitments are to mature between 2024 and 2026 US asset based loan lenders supported over US$149bn of issuance in 2023, the second highest annual total on record and over 20% of total leveraged loan volume for the year. The numbers provided an incomplete view of the 2023 ABL…
Queuing for seconds Investor appetite for credit secondaries has tripled since 2022, according to our latest Perspectives study. Investors are more switched on than ever to the opportunities available in private credit secondaries, according to Private Debt Investor’s LP Perspectives 2024 Study. In all, 21 percent of LPs now plan to commit capital to secondaries funds…
U.S. Middle Market CLO Snapshot (4Q23) Overall credit quality across U.S. middle market (MM) CLOs under Fitch Ratings’ surveillance remained stable throughout 2023 with muted defaults, while exposure to assets rated ‘CCC+’ or below increased, according to the latest U.S. MM CLO Snapshot. The quarterly report is accompanied by the Fitch U.S. MM Leveraged Loan…
Daily Analytic: Direct lending comprised 59% of US LBO volume in 2023 Execution risk drove more LBO issuers towards the direct lending market last year. US direct lending LBO volume totaled US$57.8bn in 2023, 38% lower year-over-year. Last year’s total comprised 59% of overall US LBO loan volume, easily an all-time high, topping 2022’s 45%…
Life after the fundraising slump All private markets, including private credit, experienced a tough 12 months on the fundraising trail in 2023. Hopes are higher for the year ahead. The fundraising figures are in for full-year 2023 and they reveal a drop in global private credit capital accumulation to just $219 billion, the lowest amount…
European and US LevFin Default Rates Will Continue to Rise in 2024 Leveraged finance default rates increased in 2023 in Europe and the US and will continue to rise in 2024 due to high interest cost burdens and macroeconomic pressure. Both the European and US leveraged finance sector outlooks remain deteriorating…. Subscribe to Read MoreAlready
Daily Analytic: US unitranche issuance climbed sharply in 4Q23 across both the large corporate and middle markets Unitranche lending moved markedly higher in 4Q23, with volume totaling US$44.4bn, the third busiest quarter on record. The jump in unitranche volume was evident across both the large corporate and middle markets…. Subscribe to Read MoreAlready a member?