The vast majority of respondents to William Blair’s survey on leverage lending conditions believe leverage and terms will either loosen or remain unchanged.

The volume for “new money” loans jumped last quarter (and last year) for both syndicated and privately clubbed middle market transactions.

Sponsors for club buyout financings are putting in more equity capital than either their broadly syndicated or larger middle market counterparts.

Spreads for facility sizes of $100 million or less approached 500 bps over Libor at year-end; larger deals contracted to around 450 bps.

Large liquid loans have been hit with repricings, causing the illiquidity premium for the middle market to approach 200 bps – well above the historic average.

Reported loan activity for sponsor-related syndications rose modestly last year over 2015; private “club” volume expected to be higher.

The second half of 2016, climaxing in December’s Fed hike, saw leveraged loans find increasing favor with institutional investors.

Month over month, both October and November have seen improvements over last year in middle market sponsored loan activity.

3Q 2016 was the most active quarter in the past several years for unitranche financings, as middle market sponsors increasingly access the non-bank market.

Five sectors comprise 60% of all middle market institutional loans.