What characteristics of loans will cause the biggest problems in the future? When asked what characteristics of loans determine which middle market lenders will see the biggest problems in the future at LPC’s 7th Annual Middle Market Loans Conference, earlier this month, half of respondents chose weak documents, including aggressive EBITDA add-backs. Another 35% said…
BDC returns superior so far in 2019 BDC share prices are on a tear in 2019. The Wells Fargo BDC Index has delivered a stunning +18.0% return so far in 2019 through May 17th. This is outpacing the S&P500 (+14.1%) and the S&P/LSTA Leveraged Loan Index (+5.72%). Several BDCs are near 52 week highs. Oaktree…
US leveraged loan volume seeing a higher share of B3 names While the US leveraged loan market is still challenged by lower supply, the share of B3 rated names by Moody’s has started increasing recently. In April, there was US$6.6bn of completed B3 issuer rated volume, the highest monthly total since October’s US$10.6bn…. Login to
After a slow start to the year, MM fundraising showing a pick-up After a record US$97bn in inflows into middle market direct lending in 2018, the fundraising environment is off to a slower start in 2019 with US$14bn tracked year to date. In 1Q19, LPC only tracked about US$9.0bn in inflows following a record $42.4bn…
The shift from syndicated to direct executions continues for MM LBOs Since LPC began tracking the direct lending market in 2013/2014, there has been a continued shift for middle market LBO credits to be financed via “direct lending” executions as opposed to in the syndicated loan market…. Login to Read More...
Historical Data – US: ABL Volume & Deal Count Almost US$24bn in asset based loan volume was completed via retail syndication in the US in 1Q19, a 29% increase over the year ago period, but down nearly 26% from the record quarterly high garnered in 4Q18…. Login to Read More...
Market Survey: slowing pace of demand expected well into 2Q More than half of buyside and sellside players surveyed by LPC at quarter-end said that the pace of new CLO issuance will not pick up while one quarter said it could slow down moderately…. Login to Read More...
1Q19 Syndicated loan volume down 36% y-o-y; Weakest results in 3 years 1Q19 marked an uneven start to the US loan market calendar with less than US$400bn of volume working its way through the retail market. An additional US$61.3bn was completed via clubbed participation…. Login to Read More...
Primary yields widen to highest levels since 4Q11 1Q19 yields on first-lien institutional term loans are at their highest level in over eight years. At 7.66%, the average yield assuming a three-year term to repayment on first-lien institutional term loans is 94bp above 4Q18’s already high level…. Login to Read More...
Global green loan volume tops US$10bn ytd, shadowing record 2018 pace At a pace reminiscent of the record setting US$59.5bn total set in 2018, 2019 green loan issuance topped US$10.0bn so far in 1Q19. This is modestly off from results at the same time last year which stood at nearly US$11.8bn…. Login to Read More...