MM cov-lite issuance of $22B YTD slightly behind 2017’s record high

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Year to date middle market covenant lite volume has reached US$22bn. This is only about 11.5% behind 2017’s all time record high of US$25.1bn, making 2018 the second highest year on record. Much of 2017’s strong momentum carried over into 2018 with 1H18 issuance surpassing 1H17 volume by 35%, putting 2018 on track to hitting a new record high. However, mild volatility both over the summer and in the last month has put the breaks on covenant lite volume in 2H18.