We recently joined a group of direct lenders for a round of golf. In between brilliant shotmaking we chatted about current trends in middle market leveraged loans. For one thing, it seems many of us experienced a remarkably busy August, with the competitive landscape equally challenging. Terms and structures have become as issuer-friendly as at […]
Primary leveraged yields decline slightly in 3Q19 Primary yields have tightened slightly across rating levels so far in 3Q19. The main driver behind the decline in yields are falling Libor rates. At its current level of 2.13%, the 3-month Libor rate has dropped 19bp from 2.32% at the end of 2Q19. For single B issuers,
Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the *Cliffwater Direct Lending Index (CDLI) current yield, which is based on the investment income of the underlying assets held by public and private BDCs. BDCs invest in middle market companies, and the Index
Eight years in the black Between 2017 and 2018, LPs were on the receiving end of nearly $1 trillion in private equity returns, according to PitchBook’s new Global Fund Performance Report. Distributions came in at $480 billion last year, just off the record set in 2017 of $488.4 billion. Net cashflows topped $150 billion for
News reached us last week of a two-headed snake found in the Pine Barrens of southern New Jersey. The young timber rattlesnake(s?), nicknamed Double Dave, was discovered by two environmentalists, Dave Schneider and Dave Burkett. Co-headedness, known as polycephaly, happens rarely in nature, and occasionally in finance. Double Dave’s brains operate independently. But two heads
As the Fed reversed course on interest rates last year, cash fled loan funds and piled into high-yield bond accounts.
Clearing the runway for venture lending VC fund managers are raising more capital, likely giving venture lenders more dealmaking activity. Venture capital fundraising could be on track to match last year’s $50.22 billion, according to data from sister publication Private Equity International....