Institutional loan pricing tightens sharply in January
Source: Debtwire Par
Strong demand for loans has pushed pricing sharply tighter in January, with the first-lien institutional benchmark hitting its lowest level since 1Q20. So far this month, margins have averaged Libor+320 bps, down from L+ 413bps in 4Q20. Original issue discounts (OIDs) have also posted a pronounced tightening, with the discount declining to 39bps on average from 120bps in 4Q20.