With only a few weeks left to 2023, US leveraged volume lags year ago results Despite a steadier second half to the 2H23 debt capital markets, at US$856bn, leveraged issuance for 2023 lags year ago results which totalled over US$951bn…. Subscribe to Read MoreAlready a member? Log in here...
2023 US LBO purchase price multiples are the lowest since 2018 US LBO purchase price multiples have decreased two steps this year, to 11.2x on average, the lowest mark since 2018. At the same time, the average LBO purchase price has increased to US$4.86bn this year, the highest since the credit crunch year of 2007….
BDC credit quality continues to hold up BDC credit quality held up well across different metrics in the most recent quarter. The weighted average non-accrual rate for public and private BDCs combined slipped to… Subscribe to Read MoreAlready a member? Log in here...
BDC debt valuations increase in 3Q23 BDC debt valuations climbed across the board in 3Q23, with riskier debt outperforming as hopes of an economic soft landing increased…. Subscribe to Read MoreAlready a member? Log in here...
Equity multiples increased on 3Q23 US middle market LBO deals LBO activity remains challenged by buyer and seller valuation disconnects. US middle market syndicated plus direct lending LBO volume totaled… Subscribe to Read MoreAlready a member? Log in here...
ABL Deep Dive: Numbers don’t tell entire story Over US$126bn in asset based loan volume was completed in 1-3Q23 which at first glance suggests record total for the first nine months of the year – something lenders are certainly not feeling. And there are several reasons for this. In 3Q23 alone,… Subscribe to Read MoreAlready
US market unitranche spreads decreased in 3Q23 In 3Q23, US unitranche blended spreads declined for the second straight quarter. The average unitranche blended spread, including both middle market and large corporate deals, was 625bp in 3Q23, 29bp lower than 2Q23’s average. This aligned with Refinitiv LPC’s 4Q23… Subscribe to Read MoreAlready a member? Log in
1Q-3Q23 US Syndicated ABL volume up 5% to US$127.0bn US syndicated ABL volume was up 5% to US$127.0 billion during 1Q-3Q23. The first nine months of 2023 set a new high for the US ABL market, however, a significant portion was completed during the first half as borrowers adopted SOFR based constructs. Only US$12.9 billion…
Near-term BDC loan maturities are limited Credit quality is being closely watched in the private credit markets amid the large increase in interest rates during the last eighteen months. So far, the impact on borrowers from higher rates has not produced any major uptick in defaults…. Subscribe to Read MoreAlready a member? Log in here...
Syndicated middle market volume sinks 31% in 3Q23 US syndicated middle market loan volume totaled US$23.6bn in 3Q23, 31% lower than 2Q23 and 41% lower year-over-year. 3Q23’s total was the lowest since 3Q20. Breaking out syndicated middle market lending, non-sponsored volume of US$18.2bn was 34% lower quarter-over-quarter, while sponsored issuance of US$5.4bn was 23% lower…