Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 11% as of 17 March) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses…
The serial issuer phenomenon: mastering the art of repricing An increasingly tight leveraged finance environment prompted borrowers to visit the loans market multiple times in 2024 in order to reduce pricing on their existing debt. Three rate cuts by the US Federal Reserve and increasingly tight spreads from demand outpacing supply were the main factors…
Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 10.4% as of 28 February) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses…
Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 10.3% as of 14 February) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses…
Reaping the rewards: 2024’s dividend recaps bonanza Dividend recapitalizations are making waves in the institutional leveraged loans market. In 2024, the total volume of leveraged loans raised for dividend recapitalizations rocketed to USD 29.26bn, a staggering 259% increase year-on-year (YoY) and a 232% spike from 2022’s USD 8.80bn. Despite this impressive growth, 2024’s volume still trails behind…
Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 10.4% as of 3 February) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market…
Twin peaks: loans and bonds hit new milestones in 2024 Loan issuance reached new heights in 2024. The Americas added USD 1.02trn in 4Q24 for a full-year total of USD 3.8trn, the highest number recorded in Dealogic’s database. The volume surpassed the previous high of USD 3.5trn posted in 2021. FY24 volume gained 49% year-on-year (YoY), despite a…
Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 10.7% as of 16 January) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market…
Source: VanEck BDC Income ETF, BofA Merrill Lynch US High Yield Effective Yield The blue line in the chart is the current dividend yield of the *VanEck BDC Income ETF (currently at 11% as of 6 January) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses…
Refinancing rockets, new money rises: inside 2024’s institutional loan market The institutional loan market in 2024 has witnessed a dramatic resurgence, marked by a substantial increase in refinancing activity and a notable recovery in new money issuance. With the wave of refinancing appearing to recede, attention turns towards the mergers and acquisitions (M&A) market for…