Primary leveraged yields widen across the board due to rising Libor rate

The increase in Libor rates has boosted yields on institutional term loans this quarter. The average yield, assuming a three-year term to repayment is at 5.42% so far in 1Q18; up from 4Q17’s 5.02%. Driving up the yields is the increase in the 3-month Libor rate, which is currently at 2.3%, up from 1.69% at the close of 2017.