US primary institutional yields are averaging 9.57% in 1Q23

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Average primary institutional yields have flattened in the last two quarters after soaring in 3Q22. At 9.57% so far in 1Q23, the average first-lien institutional yield, assuming a three-year term to repayment, is slightly below 4Q22’s 9.62%.  While SOFR rates continue to rise, tighter discounts and spreads have compensated for the increase in base rates.