First lien loan pricing spikes in June in tandem with secondary market collapse Source: Markit, 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 war in Ukraine…
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…
Borrowing costs for high-yield issuers ease from May highs Source: Markit, BofA US HY Index As the market for high yield bonds briefly opened back up in June in tandem with a short-lived rally in the equity markets, pricing has in turn fallen from its recent highs. Primary market picing spiked in May, largely because…
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…
High-yield bond primary issuance returns in June after vanishing in May Source: Markit, BofA US HY Index As equity markets plunged into free-fall at the start of May, high-yield (HY) bond issuance came to a shuddering halt. The whirlwind of macroeconomic headwinds buffeting financial markets appeared set to remain, causing panic among investors. With inflation…
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 loans and HY bonds stage late-month comeback in secondary market Source: Markit, BofA US HY Index Secondary markets have been in for a rough ride year-to-date, with lleveraged oans and high yield bonds seeing significant slides in average bids on outstanding debt as macroeconomic pressures from high inflation, tightening monetary policy and supply chain…
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 issuance shrinks as issuers ride out higher pricing environment Source: BofA US HY Index, Debtwire Par In the face of a host of macroeconomic headwinds, not limited to persistently high levels of inflation, rising interest rates, an ongoing war in Ukraine and supply-chain issues, and notwithstanding the emergence of the world economy from…
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…