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April was down, as expected Download PitchBook’s Report here. An early look at April 2020 deal volume shows the significant decline we’ve all been anticipating. Only 158 transactions were completed last month, less than half of the typical monthly volume we were seeing pre-pandemic. As we’ve noted in the past, some of these deals were announcedView Article
MM Sponsored dealflow pipeline expected to remain anemic through summer Middle market syndicated loan issuance remains extremely thin for sponsor-backed deals so far in 2Q20. Volume has only reached about US$1.6bn so far in 2Q20 with zero opportunistic flow such as refinancings or dividend recaps. Anecdotally, lenders indicate that the M&A pipeline is extremely thinView Article
Non-Accruals across lower middle market portfolios rise to 7.5% Effects of the coronavirus lifted the average non-accrual rate across lower middle market BDC portfolios by 1.7%, to 7.5% in the first quarter. Out of $5.8 billion of outstanding first- and second-lien term loans, $436 million was on non-accrual across 42 borrowers, up from $331 millionView Article
Fund Managers Response to COVID-19 Although fundraising is slowing in the wake of the economic fallout from COVID-19, most alternatives fund managers appear to be staying the course. From a survey conducted by Preqin to fund managers, three-quarters said that they do not plan to change their investment strategy for any active funds as aView Article
Will coronavirus prompt a new wave of distress? One of the long-term impacts of the global financial crisis was a sharp uptick in non-performing loans as lax underwriting standards prior to the crisis and the global recession that followed created a perfect storm where over-levered borrowers were unable to repay their debts....View Article
Review of Current Market Conditions/ Analysis of Capital Markets Metrics/ Review of Credit Quality/ Outlook for Second Quarter 2020
In June 2019 The Lead Left published a series of articles on private debt. This report consolidates those articles.
In May 2019 The Lead Left published a series of articles on covenant trends. This report consolidates those articles.