Lower rated credits post largest declines in secondary market Risk assets have come under renewed pressure in recent days as rising inflation has prompted expectations of a more aggressive monetary tightening by the Federal Reserve. Though equities and high yield bonds have been hit more severely, leveraged loans have not escaped market pressure with the…
After a record 2021, mid-market technology sector volume totals US$5.5bn so far this year So far this year US middle market technology sector volume totals a lower US$5.5bn through mid-May. That number includes US$2.3bn of direct lender volume tallied through the end of March. This comes after a record US$34.2bn was loaned out to middle…
BDC share prices down 9.7% YTD amid market volatility The recent inflationary environment has led to volatility in the financial markets and left investors trying to determine the impact of rising input and labor costs on companies. Against this backdrop, the equity markets have moved sharply lower, with the S&P 500 down 16.8% year-to-date through…
US LBO activity remains healthy, with volume totaling US$19.5bn so far this quarter LBO activity has remained steady despite persistent headwinds in the financial markets this year. Refinitiv LPC has tracked roughly US$19.5bn in completed syndicated and clubbed US LBO volume so far this quarter, after 1Q22 saw US$52.8bn in volume. 1Q22’s level made it the…
Loan fund flows total US$25.2bn to date in 2022 In the same week that the Fed raised rates 50bp, the largest increase in 22 years in a move that was widely expected, retail loan funds posted a US$557m inflow, its 7th consecutive week of positive flows but the 3rd week of sub US$1bn inflows. 17…
Unitranches help move senior leverage higher on direct lender middle market technology sector LBO deals The increasing popularity of the unitranche loan structure backing direct lending middle market LBOs in the technology sector drove senior leverage levels higher than those in the broadly syndicated market last year. Tech sector deals have seen persistently high purchase…
US unitranche leverage edges lower, spreads tick higher in 1Q22 First quarter 2022 US unitranche volume pulled back sharply in both the middle market and large corporate markets as lenders took a breather from the record-setting pace seen in 2H21. Unitranche issuance totaled US$10.1bn in the middle market and US$9.8bn in the large corporate market…
BDC origination activity expected to decline in 2022 but remain robust After a record setting 2021 and a slower start to 2022, BDC origination activity is expected to decline this year, according to the recent Refinitiv LPC BDC Outlook Survey. Based on responses from a cross section of BDC managers, direct lenders, research analysts and…
Equity multiples increased to 6.6x on US LBO deals in 1Q22 US LBO volume topped off at US$38.8bn in 1Q22, the lowest level since 1Q21 but good enough to be the twelfth highest quarterly level all time. One theme that pushed volume higher was larger LBO loan sizes. Three over-US$5bn LBO loan packages closed in…
1Q22 Leveraged volume down 55% amid inflation fears and Ukraine war The combination of SOFR rollout, inflationary pressures, labor and supply chain issues and the war in Ukraine (as well as its impact on commodities) all tinged the US leveraged loan market in 1Q22, contributing to lower volumes and increasing spreads. At US$186.3bn, 1Q22 leveraged…