Chart of the Week

Chart of the Week - Down Shift

Leverage declined modestly, though almost two thirds of 4Q deals were 6x total leverage or higher. US Middle Market Leverage Multiples on Institutional Deals Source: Thomson Reuters LPC

Chart of the Week - Assembly Line

CLO formation last year totaled $93 billion, off 2014’s record $124 billion, as managers wrestle with risk retention. US CLO Activity Source: S&P LCD

Chart of the Week - Off Year

Loan issuance of just under $30 billion for middle market leveraged transactions was at its lowest point since 2010. Annual Middle Market Institutional Loan Volume Source: Thomson Reuters LPC

Chart of the Week - Down Time

Leverage for all US corporate issuers is headed to levels where previous default cycles began. Source: The Daily Shot, Bloomberg Finance LP, Datastream, Deutsche Bank

Chart of the Week - In Recovery

Counterintuitively, recent data from an S&P study show recoveries for first-lien term loans improved only modestly with additional debt capital below them.

Chart of the Week - Risk/Return Rising

Halfway through the 4Q, middle market deals are showing sharp increases in both leverage and yield. Source: Thomson Reuters LPC; based on cohort of middle market deals with both leverage and yield data.