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
HY bond issuance slows sharply in August, flows turn negative Source: Debtwire Par, Lipper High yield bond issuance slowed sharply in August, totaling just USD 9.5bn, the lowest monthly figure this year, with one deal (Tenet Healthcare’s USD 4.2bn refinancing) accounting for a large chunk of activity. The second half of the month saw just
Industrial & Chemicals sector takes top spot in institutional loan & HY bond issuance Source: Debtwire Par The industrial & chemicals sector is the most active industry year-to-date in terms of both institutional loan and high yield bond issuance. On the institutional loan side, technology and business services are in the second and third positions,
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
Risk premium for second-lien loans widens Source: Debtwire Par The risk premium for second-lien loans has widened in recent months. For borrowers that issued both a first-lien and second-lien loan, the margin differential has climbed to 400bps so far in 3Q19, up from 387bps in 2Q19 and 341bps in 1Q19....
Share of LBOs levered 7x or more edges higher in 2019 Source: Debtwire Par Lender appetite for LBO loans was strong in 1H19, with leveraged loan issuance backing LBOs amounting to USD 75.7bn. The institutional loan component, the focus of buysiders’ attention, totaled USD 60.8bn. On the other hand, high yield bond volume backing LBOs
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
Higher rated loans lead margin tightening in 2Q19 Source: Debtwire Par Steady demand for loans from CLOs helped push pricing lower in 2Q19, though margins remained well above year-ago levels. Lenders snapped up higher quality credits and said they were more willing to push back on aggressive deals, given caution around where we are in
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
Add-on financings claim larger share of institutional loan market in 2019 Source: Debtwire Par Add-on financings have claimed a larger share of the institutional loan market this year, representing 15% of issuance so far in 2019, up from 12% in 2018 and 6% in 2017....