BDC newly originated second lien exposure climbs in 2Q21 BDC’s increased their second lien exposure to 12.1% of new originations in 2Q21, up from the 7.5% tracked in 1Q21. In comparison, first lien assets were relatively flat at 71.6% of originations, while equity positions slipped to 10%. At the fund level, second lien originations as a…
Unitranches continue to grow in size and scale The size and depth of the direct lending market has grown dramatically in recent years, with mega unitranches increasing in frequency. These larger deals have helped private lenders take market share from the broadly syndicated market and highlighted their growing scale. Back in 2019, there were 13…
BDC asset valuations post gains in 2021 BDC’s have benefited from rising asset valuations in recent months, with both loan and equity holdings posting gains. During 2Q21 (the most recent quarter for which data is available), the weighted average mark on BDC debt holdings climbed to 97.71% from 97.18% in the prior quarter and is…
Middle market non-sponsored syndicated volume is at US$12bn so far in 3Q21 Non-sponsored syndicated middle market loan volume is at US$12bn so far in 3Q21, already on par with the total logged in 3Q20. If the current pace continues, 3Q21’s total will be close to 2Q21’s US$29bn, which was the highest quarterly level in 3…
2021 Leveraged loan issuance at US$722bn, up 63% YoY As the delta variant threatens to destabilize US economic activity via a possible 4th wave the leveraged loan pipeline has seen an uptick as issuers move to bring deals to market before Labor Day. Over US$224bn of leveraged deals hit the pipeline in July, of which US$66.3bn…
Refinitiv LPC’s Quarterly Lender Survey: Are you able to adequately engage with your clients/co-workers? As more people are heading into the office, six percent of large corporate buyside and sellside lenders surveyed by Refinitiv LPC said that the quality of engagement is better now given that they can find ways to meet in person or…
Middle market cov-lite volume reaches highest level since 4Q19 Middle market covenant-lite volume was tracked at US$1.71bn in 2Q21, the highest level since 4Q19’s mark of US$1.75bn. Totals represented a 155% increase over the $670m tracked in 1Q21. The jump comes as the middle market lending arena remains ultra-competitive, characterized by lower pricing, higher leverage…
2Q21 middle market syndicated loan volume of US$46bn was at its highest since 2Q18 The syndicated middle market was at full speed in 2Q21 with volume soaring to its highest level in 3 years at US$46bn. New money lending of US$23bn was up 30% from 1Q20 and was at levels not seen since 2017. Refinancing…
2Q21 M&A loan volume nearly 3 times year ago totals; 1H21 volume two times 1H20 results Nearly US$175bn in M&A loan volume was completed in 2Q21, a 40% increase over 1Q21 results and almost three times the comparable year ago totals. The market completed almost US$300bn in M&A loan volume during the first six months…
1H21 U.S. loan volume up 58% y-o-y; Second highest total on record U.S. arrangers pushed almost US$1.466trn through the retail syndication in 1H21, a 58% increase over the same period last year and the strongest half year totals since 1H18 (US$1.492trn). At US$764.10bn, 2Q21 syndicated loan volume marked a two fold jump over year ago…