LIBOR floors shift lower in borrower friendly market Source: Debtwire Par The percentage of loans issued with a 1% LIBOR floor or greater has continued to decline, driven in no small part by the wave of repricings hitting the loan market this year – loan repricings have made up a whopping 49% of the USD
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
Convergence of market dynamics brings loans back into focus Source: Debtwire Par The convergence of several market factors has led loans to the forefront of the leveraged debt markets in 2021. Institutional loans made up roughly two thirds of combined loan and bond issuance in January, one of the highest proportions seen since this time
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 tightens sharply in January Source: Debtwire Par Strong demand for loans has pushed pricing sharply tighter in January, with the first-lien institutional benchmark hitting its lowest level since 1Q20. So far this month, margins have averaged Libor+320 bps, down from L+ 413bps in 4Q20. Original issue discounts (OIDs) have also posted a
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
Strong start to the year for buyouts; repricings make a return Source: Debtwire Par Institutional loans backing buyout activity climbed to USD 40.2bn in 4Q20 from just USD 13.8bn in 3Q20. Despite the late-year increase in deal flow, LBO institutional loan issuance ended the year at USD 103bn, down from the USD 119bn posted 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
LBO deal flow drops sharply in 2020; fewer large transactions hits new money loan supply Source: Debtwire Par As we approach the end of 2020, LBO financings have helped boost loan supply this quarter, with syndicated institutional loans backing buyouts climbing to USD 28.7bn, a sharp jump from the USD 8.9bn recorded in 3Q20. Despite
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