Libor floors remain in institutional market, but are lower in 4Q20 As the Libor rate remains at low levels, investors continue to demand Libor floors in the institutional market. The average 3-month Libor rate is at an average of 0.22% so far in 4Q20, this is down from 0.25% in 3Q20 and is roughly 130bp…
Over half of US CLOs report less than 1% of portfolio assets in default Before COVID-19, 78% of post-crisis US CLOs reported less than 1% of their portfolio in default, 15% reported between 1% and <2% of their principal balance in default, while 7% reported more than 2% in default. By August, only 44% of…
Pricing widens significantly for borrowing base E&P revolvers in 2020 Lending to the oil and gas upstream sector at US$17.3bn is down 78% so far this year from the total logged in 2019. With most of the lending to this sector coming from banks through reserve-based revolvers, many issuers have seen the availability tighten under…
Political headlines and investor pressure provide impetus for accelerated ESG discussions US President-elect Biden announced 10 executive actions that he will take on the first day of his presidency in January in an effort to combat climate change. This undertaking will run afoul of the Trump administration’s recent announcement that it will accept sale lease…
LBO leverage multiples stay aggressive in 4Q20 After remaining extremely light the past two quarters, LBO activity has picked up, as private equity sponsors are putting more money to work. Through the end of last week, there was US$16.5bn in completed US LBO volume, 19% higher than year-ago levels…. Subscribe to Read MoreAlready a member?
Refinitiv LPC’s Quarterly Lender Survey: When do you expect to meet more than a handful of clients face to face? While the adjustment to working remotely has alllowed for new efficiencies, with lenders commenting that processes such as amendments for more straightforward asks could go through faster than pre-Covid, the challenge of sourcing new business…
New money loan assets make up 60% of 4Q20 leveraged volume to date 4Q20 US Leveraged loan volume was tracked at $39.8bn through October 22nd, up 8% compared to the $36.9bn raised during the same time last year. Of this total, $24bn or 60% of quarterly issuance thus far represents new loan assets while the…
Middle market syndicated non-sponsored volume dropped in 3Q20 Non-sponsored syndicated loan issuance of US$10.2bn in 3Q20, was down 24% from already low 2Q20 figures. 3Q20 issuance was spread over 80 deals, the lowest level of transactions in a quarter for at least 13 years. Refinancings plummeted once again in 3Q20…. Subscribe to Read MoreAlready a
3Q20 MM sponsored loan issuance picks up from 2Q20’s low, but still quite anemic Sponsor-backed middle market volume showed a pick up in 3Q20 to US$5.6bn, up 120% from 2Q20’s post credit crisis low. But volume was still quite dire and over 62% behind 3Q19’s level. While pricing has been tightening dramatically month after month,…
1-3Q20 Leveraged volume up 6% y-o-y; Asset mix skews toward HY bond issuance US Leveraged borrowers pushed nearly US$839bn of issuance through the market during the first nine months of 2020, a 6% increase over the same time last year. Although the totals did not shift dramatically year over, the mix of loans and bonds…