Syndicated middle market loan volume falls 37% q-o-q in 3Q22 3Q22 syndicated middle market loan issuance tumbled by 37% quarter over quarter amid increased economic uncertainty and market volatility. Lending activity fell to US$35bn in 3Q22 from US$55bn in 2Q22 and was also far below the US$50bn posted in 3Q21. On a year-to-date basis, issuance…
3Q22 U.S. Leveraged volume down 45%; HY bonds off 77% y-o-y Less than US$182bn of leveraged loans and HY bond issuance was completed in 3Q22, the weakest quarterly results in over six years and a55% drop compared to the same time last year. At US$759bn, 1-3Q22 totals were down almost 45% compared to the year…
Poll: Direct lenders overwhelmingly say they stayed busy in 3Q22 The direct lending market continues to be a popular go-to option at a time when the syndicated loan market has seen lower volumes due to heightened levels of volatility. Refinitiv LPC recently polled US middle market lenders, asking them: were you able to lend as…
Unitranche minimum spread threshold shifts higher While volatility led to a significant increase in pricing in the broadly syndicated institutional loan market early in the year, it took longer to have an effect in the direct lending space. For unitranches, the average blended spread in 2Q22 was flat relative to 1Q22 at 596bp. However, direct…
BDC share price-to-book value remains above recent lows BDC share price-to-book values have bounced around recently, impacted by shifting investor sentiment. The average share price-to-book value is at 0.91x as of September 9, down from 0.95x in mid-August but is still up from a recent low of 0.80x in June. There are wide variations in…
US$7.6bn of new issue US CLOs priced in August US CLO new issue volume was US$7.6bn in August, down from US$11.5bn in July and down from US$19.2bn priced in August last year. Although the pace of new CLO formation slowed, total volume so far in 2022 is US$92.57bn, just 18% behind issuance over the same…
Blackstone Private Credit Fund continues to grow Perpetual-life BDCs continue to pull in money, with these funds accounting for the majority of recent growth in the BDC space. In addition to enticing investors with attractive yields like all BDCs, perpetual-life BDCs continually offer new shares monthly and provide investors with quarterly liquidity through a share…
BDC loan valuations shift lower in recent filings The fair value of BDC debt investments declined in 2Q22, driven by credit spread widening across the broader markets as volatility spiked against a backdrop of inflationary pressures and recession fears. Looking at the cohort of 56 BDCs that have posted earnings as of August 10, the…
The healthcare sector led sponsored MM lending in 1H22 Overall sponsored middle market lending activity (comprised of both direct lending and syndicated volume) was robust again in 2Q22, climbing 42% to US$44bn. The healthcare, business services and technology sectors remained in the top 3 spots in the most recent quarter, cementing their lead in the…
Middle market unitranche leverage declines in 2Q22 Leverage on middle market unitranche loans tightened to 5.57x in 2Q22, its lowest level since 3Q20, as it continued to retreat from the record highs seen in 2021. From a pricing perspective, blended spreads were flat for middle market unitranches, averaging 600bp in the most recent quarter…. Subscribe