Prohibitive financing costs continue to plague the loan primary market Source: Debtwire Par Institutional leveraged loan issuance has plummeted 68% from levels seen just last year, to USD 233.2bn through September. As the macroeconomic headwinds beleaguering the market have remained persistent – inflation remains sticky, the Federal Reserve is expected to keep on an aggressive…
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…
Leveraged loan & high yield bond default rate creeps up from recent lows Source: Fitch Ratings, Debtwire Par One area to watch as the Federal Reserve maneuvers a soft landing from inflation will be the credit health of leveraged borrowers in the face of prolonged economic pain caused by tightening monetary policy. August saw an…
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 and bond investors trade short-term pain for long term-gain Source: Debtwire Par, Markit, ICE BofA US HY Index Following a short-lived summer rally in the leveraged loan and high yield bond secondary markets, prices have once again been on the downswing. Leading up to fiery comments from Fed Chairman Jerome Powell at the Jackson…
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…
Leveraged loan and high yield bond secondary prices move up from recent lows Source: Debtwire Par, Markit, ICE BofA US HY Index To open the year, loans were bid at an average price of 97.78, with approximately 20% of loans bid in the par-plus range. As inflation numbers started coming in hot, and as the…
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…
Jumbo loan buy-out financings remain prevelant amid choppy secondary market Source: Debtwire Par Leveraged loan and high-yield bond issuance backing buy-outs exploded in 2021, increasing 95% over the 2020 figure to set a new annual record of USD 240.3bn. Leveraged loans accounted for USD 212.7bn of issuance, up 98% from 2020, while HY bonds made…
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…