US Single-B volume share increases in 2Q23 Completed US loan volume to issuers with a Single-B rating totals US$30.5bn so far in 2Q23, comprising 25% of leveraged volume. This is up from last quarter’s 22% share and is the highest since 1Q22’s 28%…. Subscribe to Read MoreAlready a member? Log in here...
BDC first-lien debt valuations increased but second-lien and subordinated marks fell in 1Q23 BDC first-lien debt valuations climbed but second-lien and subordinated debt marks fell in 1Q23. The weighted average mark on BDC first-lien debt holdings increased by 25bp, to 96.59% in the most recent quarter. In contrast, second-lien and subordinated debt declined by 18bp…
B-rated yield premium widens for US issuers in 2Q23 Primary loan yields in the US institutional loan market have widened slightly this quarter. However, when looking across issuer ratings, riskier credits have seen a bigger increase. At an average of 8.32% so far this quarter, the average primary yield on first-lien institutional term loans… Subscribe
Interest coverage ratios on new loans remain well below year-ago levels Against a backdrop of sharply higher interest rates in the last year, interest coverage ratios have moved lower. The average interest coverage ratio of 2.45x on new middle market sponsored deals in 1Q23 was well below the 3.07x posted a year earlier… Subscribe to
US institutional primary yields widen to 10.26% in 2Q23TD After plummeting in March, activity has picked up in the institutional market. However, issuers are facing higher yields on average so far this quarter. After a huge jump in 3Q22, average yields were relatively flat in the last two quarters, as higher base rates were compensated…
Middle market LBO purchase price multiples declined in 1Q23 Middle market LBO purchase price multiples declined from 12.3 times in 2022 to 11.4 times in 1Q23, the lowest level since 3Q20. While purchase price multiples declined, the equity multiple was only down minimally, to 7.3 times, from 7.4 times in 2022…. Subscribe to Read MoreAlready
US sponsored middle market direct lending volume retrenched in 1Q23 Last quarter, there was US$12.5bn of US sponsored middle market direct lending volume. This was 49% lower quarter-over-quarter, 45% lower year-over-year, and the lowest level since 2Q20. The 204 deals across both the syndicated and direct sponsored middle markets in 1Q23… Subscribe to Read MoreAlready
US institutional volume wanes in wake of bank failures US institutional loan volume has waned after the failures of Silicon Valley Bank, Signature Bank and Credit Suisse rattled financial markets last month. Prior to that, institutional volume was on the rise, peaking during the week of February 27… Subscribe to Read MoreAlready a member? Log
1Q23 middle market syndicated lending dropped to US$27bn At US$26.7bn, 1Q23 middle market syndicated lending dropped to its lowest level since the pandemic. The year began on slow footing with depressed M&A activity and lower quality dealflow. Then in March the banking crisis hit, leading to a lot more caution from issuers, sponsors, and lenders….
BDC AUM climbs to US$273bn BDC market growth expectations slowed in 1Q23, with the majority of respondents (58%) in the Refinitiv LPC Quarterly BDC Survey forecasting that assets under management (AUM) will finish 2023 in the US$275bn-300bn range. Another one-third of survey participants predict that BDC AUM will end the year in the US$300bn-plus range,…