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
175bps margins dominate recent wave of loan repricings Source: Debtwire Par The recent jump in repricing activity has been marked by loans repricing to the 175bps margin area. This is in sharp contrast to last year when loan repricings were often at much higher price points. So far in 4Q19, a whopping 80% of loan
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
Higher rated loan repricing volume jumps Source: Debtwire Par Institutional loan repricing activity jumped sharply in October to USD 13.9bn, exceeding the combined USD 8.6bn recorded in the first nine months of the year. Of October’s USD 13.9bn, Charter Communications accounted for a large chunk (USD 6.2bn) of the total....
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
Underperforming credits getting hit harder in the secondary loan market Source: Debtwire Par, Markit The leveraged loan market has become more bifurcated, with underperforming credits getting hit harder in the secondary market. Despite the loan default rate remaining low in the 1.5% area, the share of loans priced at less than 90 cents on 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
Technology loans remain popular amid heightened selectivity Source: Debtwire Par Technology deals remain popular in the loan market, with institutional loans backing technology LBOs climbing to USD 21.7bn year-to-date, already surpassing the USD 19.3bn recorded in full year 2018 and setting a new record. The share of total LBO loan financings represented by the technology
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
Lenders push for higher Libor floors in the face of interest rate cuts Source: Debtwire Par Recent interest rate cuts by the Federal Reserve has prompted lenders to request higher Libor floors on leveraged loans. Earlier this month, the Federal Reserve cut interest rates by 25bps for the second time in 2019, and 3-month Libor