SBO share of buyout issuance slips Source: Debtwire Par Sponsor-to-sponsor buyouts have been commonplace in the first several months of 2021, accounting for roughly 32% of buyout-related leveraged loan issuance. While buyout activity set records in 1Q21 in terms of both deal value (USD 161bn) and count (485 deals), according to Mergermarket, leveraged loans issued
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
Demand sends loan prices higher in frothy secondary market Source: Debtwire Par, Markit Demand for leveraged loans has remained strong in April, driving the average bid on first lien institutional term loans up to a recent high of 97.14 before retreating to 96.88 by 20 April. Of the most widely quoted loans, 62% have moved
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
Borrowers and sponsors alike capitalize on opportunistic loan market Source: Debtwire Par Opportunistic deals have continued to flood the loan market in March, as a lack of new loan supply has allowed borrowers and sponsors alike to capitalize on investor appetite for paper. Of the USD 93bn of institutional loans to price in March, only
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
PE firms tap abundant liquidity, yet LBO loan deal flow struggles to meet demand Source: Debtwire Par Financial sponsors have been very busy this year, taking advantage of borrower-friendly market conditions to tap the debt markets at a rapid pace. Sponsor-backed syndicated leveraged loan issuance has already hit a quarterly record of USD 181bn, as
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
LBO loan issuance lags in 1Q21 Source: Debtwire Par It has been a busy start to the year in the leveraged loan market, though not when it comes to loans backing LBO activity. New money loan transactions, and LBOs in particular, have struggled to keep up with demand from lenders, prompting a surge in institutional
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