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
Dramatic shift in secondary loan market price distribution Source: Markit, Debtwire Par The secondary loan market has come under pressure in recent weeks amid increased financial market volatility, a jump in risk aversion and a sell-off in loan mutual funds & ETFs (aka retail funds). Outflows from retail funds in the most recent week was
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
Large EBITDA addbacks a feature of the leveraged loan market in 2018 Source: Xtract Research The deterioration in loan covenant protections has been well publicized this year, and another area that has drawn attention is EBITDA addbacks, which have gotten larger and more aggressive. Adjusted leverage levels have crept higher in 2018, with 30% of
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
Oil & gas names drop on lower oil prices, secondary loan market softens Source: Debtwire Par, Markit Oil and gas loans have moved lower recently in tandem with the sharp decline in oil prices and the softening of the broader loan market. While the average bid on oil and gas term loans is up by
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 issuance shifts towards the riskier end of market Source: Debtwire Par The ratings profile of institutional loans has shifted more towards the riskier end of the market this year as the appetite for lower rated paper has remained strong for the most part. The B rating category has proved to be the most popular,...
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
Dividend recap activity slows sharply Source: Debtwire Par Dividend recap activity has slowed sharply this year as loan investors have focused on more attractive M&A related financings available. Institutional loan issuance backing M&A related activity has jumped to USD 228bn so far in 2018, while institutional loans backing dividend recaps is only USD 12.3bn year-to-date,...