Loan fund AUM continues to grow amid large inflows in January U.S. CLO AUM ended January at $747bn, up 10.3% YoY, with 17 new U.S. CLOs totaling $8.5bn pricing last month. It was the highest January volume since 2013 and included 4 deals with a total size over $600m. Despite the pandemic, CLO AUM has…
US sponsored middle market direct lending volume reached US$71bn in 2020 According to Refinitiv LPC data, the US direct lending middle market totaled US$71bn in loan volume last year, 18% lower than 2019’s US$87bn level. Despite the lower number, the direct lending market held up better than its syndicated counterpart, where non-sponsored volume dropped 27%…
Secondary market levels at their highest levels post-Covid Prior to the pandemic, the average bid on the Overall-Market cohort of loans was in the 97.5 context, with half of loans bid between the 98-<100 level, bids above par made up around a 35% share. By March 24, the Overall-Market average had collapsed to the 82…
Middle market non-sponsored syndicated volume was up 65% in 4Q20 Non sponsored syndicated loan volume bounced back to total US$19.7bn in 4Q20, the highest quarterly level since 4Q19. In the last couple of years, the non-sponsored middle market had been chugging along, as corporate issuers were cautious about undertaking any expansion plans…. Subscribe to Read
2020 US Syndicated loan volume at 10 year low amid pandemic In a year overshadowed by a global pandemic, social unrest and a prolonged US election cycle, lenders pushed over US$1.5trn of loan volume through the syndicated market, a 27% drop over the same time last year and a 10-year low. Although Covid-19 was the…
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?