Near-term BDC loan maturities are limited Credit quality is being closely watched in the private credit markets amid the large increase in interest rates during the last eighteen months. So far, the impact on borrowers from higher rates has not produced any major uptick in defaults…. Subscribe to Read MoreAlready a member? Log in here...
Syndicated middle market volume sinks 31% in 3Q23 US syndicated middle market loan volume totaled US$23.6bn in 3Q23, 31% lower than 2Q23 and 41% lower year-over-year. 3Q23’s total was the lowest since 3Q20. Breaking out syndicated middle market lending, non-sponsored volume of US$18.2bn was 34% lower quarter-over-quarter, while sponsored issuance of US$5.4bn was 23% lower…
How does the US middle market characterize the quality of 3Q23 deal supply? Finding quality opportunities to put money to work has been one of the main challenges faced by middle market lenders this year. However, it seems that things could be improving on this front. When asked how they would characterize the quality of…
US downward price flexes soar in 3Q23 The US institutional loan market continues to gain momentum as investor appetite remains strong. This is evident in flex activity…… Subscribe to Read MoreAlready a member? Log in here...
LBO volume to get needed boost from Worldpay & Syneos loans Syndicated LBO activity has been extremely hampered so far this year. Completed US syndicated LBO loan volume totals just US$16.1bn… Subscribe to Read MoreAlready a member? Log in here...
US yields decline across the board in 3Q23 The US institutional loan market had a busy summer, with many issuers taking advantage of increased investor appetite. Many tapped the market for refinancings or repricings, as spreads and OIDs tightened, leading to lower yields across the board…. Subscribe to Read MoreAlready a member? Log in here...
BDC assets under management top US$290bn BDC assets under management continued to climb in 2Q23 and now top US$290bn. This represents a 3.8% gain from the prior quarter and is up 13.5% in the last twelve months. Perpetual-life BDCs added US$4.1bn of assets during 2Q23, taking them to US$91.4bn…. Subscribe to Read MoreAlready a member?
Sponsored large corporate direct lending volume dropped 28% in 2Q23 US sponsored large corporate direct lending loan volume totaled US$12.5bn in 2Q23, 28% lower than 1Q23’s level. The US$12.5bn total represented a 17% share of overall US large corporate sponsored loan volume, its lowest share since 3Q21…. Subscribe to Read MoreAlready a member? Log in
Interest coverage ratios move lower Interest coverage ratios have come come under pressure as base rates have moved sharply higher in the last 15 months. The average interest coverage ratio on new middle market sponsored loans slipped to 2.20x in 2Q23, the lowest level since LPC started tracking this data in 2018…. Subscribe to Read
US unitranche volume tallies under US$10bn in 2Q23 as jumbo deals become scarcer US unitranche volume sank further in 2Q23, totaling US$9.4bn, the first time it tallied less than US$10bn since 2Q20. Large corporate unitranche volume totaled only US$5.4bn, the lowest since 4Q20…. Subscribe to Read MoreAlready a member? Log in here...