Record U.S. BDC Unsecured Debt Issuance Helps Address Refinance Needs Click here to download report. Record debt issuance by Fitch-rated business development companies (BDCs) in 2024 has improved funding flexibility and is indicative of expansion of the investor base for issuers, Fitch Ratings says…. Subscribe to Read MoreAlready a member? Log in here...
Net Asset Downgrades Ease in September for US BSL CLOs Click here to download report. Fitch Ratings-rated U.S. CLOs backed by broadly syndicated loans (BSL) experienced just two net downgrades in the underlying assets – the fewest in the latest trailing twelve-month (TTM) period. The TTM period averaged about 12 net downgrades per month, but…
Cushions in Collateral Quality Tests Stay Mostly Positive Click here to download report. All Fitch-rated MM CLOs include a Fitch Test Matrix as part of a CLO’s Collateral Quality Tests (CQTs) in MM CLOs, including Fitch weighted average recovery rate (WARR), Fitch weighted average rating factor (WARF), weighted average spread (WAS) and weighted average life…
Private Credit Default Rate Debuts at 5.0% Click here to download report. Fitch Ratings’ Private Credit Default Rate (PCDR) launches at 5.0% for August 2024, covering nearly 1,200 issuers covered by Fitch in the broad private credit segment. This report highlights sector specific default rates, key trends in default activity through the year-to-date (YTD) period,…
U.S. MM CLO Spotlight – August 2024 Click here to download report. ‘CCC’ Exposure Slightly Up Exposure to assets with Fitch IDRs or credit opinions of ‘CCC+’ or below, excluding nonrated assets, increased by 20 bps to 18.4%, compared to last month and is up by 3.3% compared to a year ago…. Subscribe to Read
U.S. MM CLO Spotlight – August 2024 Click here to download report. Defaults and Deferring Marginally Down Fifteen CLOs had exposure to at least one defaulted or deferring issuer at the end of August 2024…. Subscribe to Read MoreAlready a member? Log in here...
BDC Cash Income Dividend Coverage Pressured by Payment-in-Kind Income Click here to learn more. U.S. business development companies’ (BDCs) cash earnings coverage of dividends is expected to weaken further from 2Q24 levels as the persistence of elevated interest rates will drive further increases in paid-in-kind (PIK) income, Fitch Ratings says. Potential rate cuts, spread compression…
Fitch’s Privately Monitored Middle Market Portfolio Overview, 2Q24 Click here to download report. In the charts that follow, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers…. Subscribe to Read MoreAlready a member?
Fitch’s Privately Monitored Middle Market Portfolio Overview, 2Q24 Click here to download report. In the charts that follow, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers…. Subscribe to Read MoreAlready a member?
Comparing Business Development Companies and Middle Market Collateralized Loan Obligations (Part 2) Click here to learn more. There can be a meaningful difference in the seniority of the assets in a MM CLO versus those in a BDC. MM CLOs consist almost exclusively of first lien senior secured loans, while BDCs can invest all the…