Secured bonds grab larger share of the market Source: Debtwire Par Since the high yield bond market reopened in January, issuance has been marked by a sharp jump in the share of secured bonds. So far, in 1Q19, USD 13bn of secured bonds have priced, representing 45% of overall high yield bond volume, up 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…
Volume of loans in syndication climbs as market finds footing Source: Debtwire Par The volume of institutional loans in syndication has climbed in recent weeks as the loan market has found its footing after a difficult end to 2018, when volatility spiked and several deals struggled before being pulled from market. The institutional loan calendar…
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 rally along with HY bonds and equities Source: Debtwire Par, Markit, ICE Leveraged loans are off to a good start in 2019, with secondary market prices rallying, after taking a hit in the latter part of 2018. Loans have followed the gains in high yield bonds and equities, where risk aversion has eased…
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…