As Libor declines, Libor floors begin to trickle back As interest rates continue to decline, Libor floors are on investors’ minds once again. As of September 24, the 3-month Libor rate was 2.11%, 69bp below its 2018- year-end level. So far in 3Q19, the average Libor rate is 2.20%, down from 2.51% in 2Q19. If…
Private Debt Investors’ Preferences Based on the Preqin’s Investor Update report, private debt investors would have changed their preferences on how and where the best opportunities are presented in the asset class in the next 12 months. Direct lending remains the most sought-after strategy among private debt investors, with almost half (49%) believing the strategy…
Average Unadjusted Leverage for M&A-Driven Loan Deals Contact: Steven Miller
A drop in fund closings portends more capital in fewer hands Yet another data point is emerging to showcase how fewer managers are raising an outsized amount of the capital LPs are allocating to the asset class. One of the most prominent trends in private credit today has been that of consolidation. It’s often used…
Source: LevFin Insights Source: LevFin Insights Source: Lipper Contact: Robert Polenberg robert.polenberg@levfininsights.com
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…
Bastille Day is a French national holiday in July with fireworks and parades. This year it was also celebrated in Paris by a “dazzling” test of the Flyboard Air – a jet-powered hoverboard. Its inventor, Franky Zapata, hoped to become the first to cross the English Channel on such a vehicle. So hopes were riding…
The historic relationship between Libor and midcap loan spreads has been inconsistent.
Contact: Marina Lukatsky marina.lukatsky@spglobal.com
Middle market update Download PitchBook’s Report here. Middle market PE activity was strong through the first half of the year, according to PitchBook’s newly calculated Middle Market Report. Both deal value and overall volume are on pace to match or exceed last year’s numbers, both of which were records. The back half of the year has…