Record US$1.8tr of US leveraged issuance clears market in 2021 In the absence of major market blips or deepening concerns around deteriorating credit quality, US leveraged lenders supported nearly US$1.8tr in loan and bond issuance in 2021, the highest total on record. The unabated presence of Covid-19 certainly impacted lender operations in so far as…
Middle market syndicated M&A volume reaches US$49.2bn year-to-date Middle market syndicated loan M&A volume has reached US$49.2bn year-to-date, surpassing the US$46.1bn and US$44.4bn posted in 2018 and 2019, respectively. The last three quarters have been particularly busy on the back of buoyant M&A activity, with loan volume climbing to US$14.5bn in the current quarter, far outpacing…
US leveraged loan and HY bond returns bounce back in December Leveraged loans posted their worst month of post-pandemic returns in November, at -0.16%, according to the S&P/LSTA Leveraged Loan Index, while US high-yield bond returns slumped 1.02%, their second consecutive month of negative returns, according to the ICE BofA US HY Index…. Subscribe to
Total assets in BDCs climb to over US$180bn Total assets in BDCs climbed to over US$180bn in 3Q21, as publicly traded BDC assets increased to US$111bn, up from US$104bn in the prior quarter. In the same period, private/unlisted BDC assets grew to US$70bn from US$57bn. On the private side, Blackstone Private Credit Fund led the…
Including direct lending loans, 2021 US LBO volume is at an all-time high When including direct lending deals, US LBO loan volume has reached an all-time high this year. Year-to-date through November 22, there has been US$194bn in syndicated US LBO volume and US$34bn of middle market direct lending LBO volume (direct lending data as…
BDC portfolio loan coupons tighten significantly in 2021 The huge growth of fundraising in the direct lending market and the resulting need to put money to work has pressured loan coupons across market segments this year. The robust lender appetite has enabled borrowers to refinance more expensive debt while allowing sponsors to tap the market…
Equity multiples average an all-time high 7.1x on middle market LBO deals this year US middle market LBO purchase price multiples have continued to move higher this year. Through the first nine months of the year, the average middle market LBO purchase price multiple was 12.1x, an all-time high, and 8% above last year’s previous…
BDC visible loans benchmark shifts higher in 2021 BDC earnings season is underway with 22 funds having released their 3Q21 reports so far through November 3. This cohort of BDCs has seen their NAV per share increase by an average of 5.6% in the first three quarters of 2021. The appreciation in asset valuations this…
Middle market LBO direct lending surges to new heights It was a record setting quarter for middle market LBO direct lending in 3Q21, with volume surging to US$16.3bn, nearly double the 2Q21 level and 50% above the prior record set in 4Q20. On a year-to-date basis, the US$33.9bn of middle market direct lending LBO volume…
Wholesale is the top sector for non-sponsored MM volume this year US syndicated middle market non-sponsored volume totaled US$82bn in 1Q-3Q21, an over 80% increase year-over-year. Leading the way was the wholesale sector with US$9.5bn in volume, 102% higher than 1-3Q20’s level. Refinancing activity has been the big driver of wholesale issuance this year,…