Leveraged Loan Insight & Analysis – 8/18/2014

LSEG (1)
Content hub / Article / LSEG / Leveraged Loan Insight & Analysis – 8/18/2014
Global volatility has spread down to the leveraged loan market and investors are pushing back. Twenty one first-lien institutional term loans have flexed up in the first half of August, just one shy of the total for the months of April and May. On the flipside, only four first-lien term loans have flexed down, dramatically lower than the thirty four that flexed down last month.
August 18 2014 TR
In late April and May, technicals softened in the institutional loan market as funds were pulled out of retail funds. However, strong CLO issuance more than offset the outflows and market dynamics shifted once again in June. Downward price flexes outnumbered upward flexes by almost 5 times that month.
In July, the ratio declined, but was still at 2.3:1. So far in August, the trend has reverted and upward flexes are outnumbering downward flexes by 5.3:1. Not surprisingly, the average yield assuming a three-year term to repayment has widened to 5.65 percent in August from 5.5 percent in July and is roughly 70bp higher than June’s level. The market shift has led to some deals getting pulled or postponed. Last week, the $585 million credit facility backing the combination of Bioplan and Arcade Marketing was shelved until September due to challenging market conditions. Underliers

Register now for LPC’s 20th Annual Loan Conference on Sept. 18th New registrations use PROMO “LEADLEFT2014”.

 

Contact: Diana Diquez 
Contact Diana Diquez
Making sense of private credit defaults

Webinar

Making sense of private credit defaults

What does private credit default data really tell us? Join our exclusive webinar featuring experts from KBRA, Moody's, Fitch Ratings, and S&P Global to find out.
Register
US Private Credit League Tables H1'26

Report

US Private Credit League Tables H1'26

The definitive rankings covering private credit activity in H1'26.
Download
Business development companies and the rise of balance sheet financing vehicles

Podcast

Business development companies and the rise of balance sheet financing vehicles

Fitch's Deb Murnin and Chelsea Richardson discuss the growing use of off-balance-sheet JVs and finance companies among BDCs, exploring the drivers, leverage impacts, portfolio risk profiles, and potential rating implications for Fitch-rated BDCs.
Listen
PitchBook's Q2 2026 US PE Breakdown

Report

PitchBook's Q2 2026 US PE Breakdown

Software freezes and energy powers on as US PE deal value falls 38% in Q2 2026.
Download
Private Debt Investor New York Forum

September 15-16, Hudson Yards, New York

Private Debt Investor New York Forum

Bringing together the investors, managers and advisers shaping the next phase of the market — 200+ allocators and $10.6 trillion of LP capital expected. Benchmark strategies, hear from leading LPs, and cut through market noise over two unmissable days.
Learn more

Latest news

    Unconquered Territory

    With most of the map still unexplored, there’s room for a sequel.

    Read More

    Business of Private Credit: Coming Home

    Much attention has been paid to the suitability of Matt Damon in the lead role as the wily Odysseus in this summer’s Christopher Nolan blockbuster.

    Read More

    KBRA DLD Default Indices

    Read More