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

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.

After a strong September, new deal volume eased and demand jumped, creating better technicals in the broadly syndicated market. Source: S&P Capital IQ LCD

Middle market CLO volume $5.5 billion year to date; full year total may fall short of 2014. Source: Thomson Reuters LPC, Wells Fargo

Issuance of private subordinated debt capital has steadily grown since the credit crisis, though last quarter was off the prior number. Source: Thomson Reuters LPC

The number of risk rating downgrades in the corporate sector has hit a five year high – worst since the credit crisis.  Source: The Daily Shot, @WSJ Markets

Supply/demand imbalance among unitranche providers continues to keep one-stop pricing below that of junior capital. Source: Lincoln’s proprietary database of over 600 privately-held companies

Since early 2014 high-yield default rates have more than doubled, while the same metric for loans remains below 1.5%. Source: Credit Suisse

Cash leaving loan funds has slowed, but still sees nine consecutive weeks of $4 billion outflows.

So far this year leveraged loans have managed to earn a 3% return – better than other investments, and with lower volatility. Source: Credit Suisse