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…
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 10.9% as of 13 December) 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 10.9% as of 2 December) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses…
Under pressure: leveraged loan defaults are spiking Annual loan defaults are soaring, with this year’s rate of 4.7% surpassing 4.5% seen during the economic slowdown in 2020 triggered by the advent of the pandemic. It also marks the highest default rate since the global financial crisis, when defaults peaked at 10.5%…. Subscribe to Read MoreAlready
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 11.2% as of 7 November) that tracks the overall performance of publicly traded business development companies (BDCs, are lenders to privately held middle-market businesses…