Unitranche minimum spread threshold shifts higher

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While volatility led to a significant increase in pricing in the broadly syndicated institutional loan market early in the year, it took longer to have an effect in the direct lending space. For unitranches, the average blended spread in 2Q22 was flat relative to 1Q22 at 596bp. However, direct lenders say there was a shift in late June and early July, and that pricing has increased in the direct lending market.