As the Fed reversed course on interest rates last year, cash fled loan funds and piled into high-yield bond accounts.
The average price of a most-liquid broadly syndicated leveraged loan has been within a band most of the summer.
The number of leveraged loans for buyouts over $1 billion has grown steadily since the Great Recession.
The illiquid non-correlated nature of smaller loans are attractive features amidst today’s market volatility.
Over half of sponsored transactions are displaying greater than 10x purchase price multiples.
To select a private debt manager, investors must perform due diligence on a variety of factors.
Thanks to consistent repayments since the credit crisis, direct loans have an effective life of less than three years.
Cliffwater’s analysis of risk premiums across asset classes shows a broad range of returns above Treasurys.
Losses incurred by direct lenders tend to follow a pattern based on the experience of each manager. Source: Cliffwater LLC
The recent pick-up of senior lending coincides with new private credit providers entering the market.