U.S. Middle Market CLOs’ ‘CCC’ Exposure Rising in Third Quarter
Negative rating migration has increased the average exposure to assets rated ‘CCC+’ or below to 19.4%, up 4.3% compared to 2Q23, across U.S. middle market (MM) collateralized loan obligations (CLOs) under surveillance by Fitch Ratings. This is the highest level observed since 3Q20, when the ‘CCC+’ or below exposure reached 21.3%. Downgrades in the underlying MM issuers are driven by observed pressure on interest coverage cushions and increase in leverage multiples.
CTA button: Download Report
(Past performance is no guarantee of future results.)
Latest news
Rate hike expectations ease as term SOFR curve flattens
The CME six-month Term SOFR rate reached a recent high of 3.979% on July 28 before retreating to 3.837% as…
3Q26: New loan assets rise to 44% of total lending, a 3-year high
New loan assets as a proportion of total US loan volume make up 44% of the 3Q26 pipeline to date,…
North American GPs dominant as fundraising accelerates
Our PEI Private Credit 200 ranking also shows capital raising increasing overall – and accelerating especially fast for the largest…