Sponsors cash out on demand for leveraged loans in 2021 Source: Dealogic, Debtwire Par Year-to-date dividend recapitalization financings have surpassed the full-year figures seen in the previous five years, as borrowers and financial sponsors alike capitalize on investor demand for leveraged loans. Issuance of USD 36.2bn through 20 October has already surpassed the 2020 figure
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
Quarterly buyout volume reaches new heights in 3Q21 Source: Dealogic, Debtwire Par Institutional loans supporting buyout activity jumped to USD 21.1bn in September, bringing the quarterly figure to USD 52.4bn and surpassing the previous quarterly high of USD 48.9bn set in 2Q21. High yield bonds similarly saw buyout issuance spike in 3Q21, to USD 13.9bn,
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
M&A/Buyout deals outnumber refinancings, sending pricing higher Source: Dealogic, Debtwire Par With institutional issuance slowing to USD 43.6bn in August, its lowest level in the year to date (YTD), a steady flow of M&A and buyout related financings (USD 25.2bn or 58% of monthly issuance) and a slowdown in refinancing transactions (USD 12.2bn or 28% of issuance) contributed
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
Institutional loan pricing shifts wider in August Source: Debtwire Par To begin the year, a surge of repricing and refinancing activity helped to push loan pricing to historically tight levels – in January, when repricing volume spiked to USD 43.2bn, average margins on institutional first lien loans fell to just 333bps, with yields averaging 3.92%.
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
Loan secondary prices stumble as attention turns to the primary markets Source: Debtwire Par, Markit The seemingly unrelenting secondary market rally hit a wall in July, with average bids in the loan secondary market falling 56bps during the month to 97.39, with the share of loans trading in the par-plus slice of the market falling
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