M&A/Buyout deals outnumber refinancings, sending pricing higher Source: Dealogic, Debtwire Par With institutional issuance slowing to USD 43.6bn in August, its lowest level in the year to date (YTD), a steady flow of M&A and buyout related financings (USD 25.2bn or 58% of monthly issuance) and a slowdown in refinancing transactions (USD 12.2bn or 28% of issuance) contributed…
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 shifts wider in August Source: Debtwire Par To begin the year, a surge of repricing and refinancing activity helped to push loan pricing to historically tight levels – in January, when repricing volume spiked to USD 43.2bn, average margins on institutional first lien loans fell to just 333bps, with yields averaging 3.92%….
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 secondary prices stumble as attention turns to the primary markets Source: Debtwire Par, Markit The seemingly unrelenting secondary market rally hit a wall in July, with average bids in the loan secondary market falling 56bps during the month to 97.39, with the share of loans trading in the par-plus slice of the market falling…
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…
Average WE unitranche size rockets Source: Debtwire Par The total WE unitranche volume for the year is expected to come in higher than last year and lower than the peak volumes seen in 2019. Around EUR 6.8bn has been raised in 2021 to date compared with EUR 5.8bn and EUR 8.6bn secured over the same…
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 buyout financings accelerate in 2Q21, with jumbo deals driving volume Source: Debtwire Par Leveraged loans backing buyouts nearly doubled in volume from the 1Q21 figure, landing at USD 62.3bn for the second quarter of 2021. This comes as welcome news for investors, as year-to-date issuance through June represents a 55% improvement over the year-ago…
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…