US CLO distribution of defaulted loans by sector In May, the top sectors of defaulted loans held within active CLOs on a volume basis were Healthcare, Telecommunications and Technology. One-hundred and thirty-two CLOs currently hold defaulted Healthcare debt, 163 CLOs hold defaulted Telecom debt and 83 CLOs hold defaulted debt in Technology…. Subscribe to Read
Loan mutual fund AUM continued to decline, ending May at US$137bn Loan retail outflows sent the AUM (market value) for loan mutual funds & ETFs lower to US$137.7bn as of the end of May, a decline of US$1.92bn or -1.4% month on month, and US$9.9bn or -7% since the beginning of the year. Loan funds’…
What is the biggest challenge in the CLO market today? When asked to write in what they believe is the biggest issue or challenge facing the CLO market today, many respondents noted persistently high liabilities spreads. Only nine percent of CLO arrangers, managers and investors across the stack surveyed by LPC expect that triple-A spreads…
What characteristics of loans will cause the biggest problems in the future? When asked what characteristics of loans determine which middle market lenders will see the biggest problems in the future at LPC’s 7th Annual Middle Market Loans Conference, earlier this month, half of respondents chose weak documents, including aggressive EBITDA add-backs. Another 35% said…
BDC returns superior so far in 2019 BDC share prices are on a tear in 2019. The Wells Fargo BDC Index has delivered a stunning +18.0% return so far in 2019 through May 17th. This is outpacing the S&P500 (+14.1%) and the S&P/LSTA Leveraged Loan Index (+5.72%). Several BDCs are near 52 week highs. Oaktree…
US leveraged loan volume seeing a higher share of B3 names While the US leveraged loan market is still challenged by lower supply, the share of B3 rated names by Moody’s has started increasing recently. In April, there was US$6.6bn of completed B3 issuer rated volume, the highest monthly total since October’s US$10.6bn…. Subscribe to
After a slow start to the year, MM fundraising showing a pick-up After a record US$97bn in inflows into middle market direct lending in 2018, the fundraising environment is off to a slower start in 2019 with US$14bn tracked year to date. In 1Q19, LPC only tracked about US$9.0bn in inflows following a record $42.4bn…
The shift from syndicated to direct executions continues for MM LBOs Since LPC began tracking the direct lending market in 2013/2014, there has been a continued shift for middle market LBO credits to be financed via “direct lending” executions as opposed to in the syndicated loan market…. Subscribe to Read MoreAlready a member? Log in
Historical Data – US: ABL Volume & Deal Count Almost US$24bn in asset based loan volume was completed via retail syndication in the US in 1Q19, a 29% increase over the year ago period, but down nearly 26% from the record quarterly high garnered in 4Q18…. Subscribe to Read MoreAlready a member? Log in here...
Market Survey: slowing pace of demand expected well into 2Q More than half of buyside and sellside players surveyed by LPC at quarter-end said that the pace of new CLO issuance will not pick up while one quarter said it could slow down moderately…. Subscribe to Read MoreAlready a member? Log in here...